By K&R Principals David Turner & Kimberly Bretz
Last week’s Wall Street Journal Global Food Forum made one thing clear: transformation isn’t coming — it’s already here. Across the food and ag value chain, shifts in consumer behavior, policy, and investment are redrawing the landscape in real time. For leaders, the question is not just how to respond but how to lead through it.
Protein Demand and the Consumer Health Movement
Health and wellness are no longer fringe priorities, they’re reshaping the center of the plate. Protein demand continues to surge as consumers seek foods that fuel performance, longevity, and overall well-being. This isn’t just a dietary preference; it’s a long-term shift in values. The companies positioned to innovate in this space — whether through alternative proteins, functional ingredients, or clean-label formulations — will be the ones to watch. Those that can’t keep pace may find themselves edged out.
Labor, Policy, and Supply Chain Fragility
Few topics sparked as much urgency as the collision between immigration policy and agricultural labor. With too few hands to harvest, crops are literally being plowed back into the soil. It’s a stark reminder that policy decisions have tangible, immediate effects on supply chains and ultimately, the food on consumers’ tables. For food and ag leaders, this isn’t a problem to observe from the sidelines. It’s a business-critical issue with direct implications for yield, cost, and supply chain stability. Navigating it will require more than short-term workarounds. It demands long-term workforce strategies, smarter deployment of automation where feasible, and a willingness to engage in policy discussions that reflect the real-world needs of the industry.
Consumer Polarization and Purchasing Power
The divide between high- and middle-income consumers is becoming more than a macroeconomic talking point; it’s dictating how brands position themselves. Households earning $250K+ now represent nearly 70% of consumer spending, while those earning less are managing record levels of credit card debt.1 This economic polarization means food companies must walk a fine line between premiumization and affordability, between aspirational branding and value-driven messaging.
Processing, Pricing, and Public Perception
The regulatory fog surrounding “ultra-processed foods” is creating ripple effects across the industry from R&D to investor relations. As scrutiny intensifies, companies need to double down on transparency and science-backed storytelling. At the same time, pressure is mounting from another front: tariffs. While their full impact hasn’t reached consumers yet, cost increases on essentials like cocoa, coffee, oils, and meat are on the horizon. The convergence of these forces will test pricing strategies, margin resilience, and consumer trust.
Capital Discipline in a Cautious Investment Climate
In a year marked by economic uncertainty, the deal market has told a sobering story. Seventy percent of sub-$100MM food industry transactions were withdrawn in the past year due to missed forecasts. The remaining 30% were largely snapped up by large CPGs with the balance sheets to absorb risk.1 The takeaway? Sound fundamentals, realistic projections, and operational clarity matter more than ever — especially for companies seeking capital or exit opportunities.
The New Mandate for Leadership
From the forum’s many threads, one throughline emerged: we’re entering an era where food is viewed as medicine, and where trust, health, and innovation are the currencies of growth. Leaders who can bridge the worlds of science and soil, policy and profit, will shape the next chapter of food and agriculture.
The challenge ahead isn’t just navigating change — it’s leading through it with clarity, conviction, and vision. Connect with us to discuss your human capital challenges and leadership needs.
Resources:
1 – WSJ GFF Speaker: Dan Frommer, Founder and Editor in Chief, The New Consumer
