2026: A Turning Point for Processors on Health, Tech and Consumer Trends

Dongoski:
The No. 1 change is continued movement in consumer preferences toward better-for-you products and better health outcomes.

Whether you’re talking generationally or looking at GLP-1 drugs, we now have oral GLP-1s being sold on Amazon. In 2025, everything was injectable and expensive. Costs are coming down, and that will drive consumer behavior.

Right behind that is continued regulatory focus on food and health. We’ve seen the new Food Pyramid, changes in vaccination policy, and other indicators of broader shifts. Tariffs and geopolitics matter, but consumer preferences — especially around health and protein — are the primary driver.

Black:
I completely agree. I’d add that consumers want health and value. People are extremely price-aware, comparing prices constantly and changing behavior toward lower-priced options. So it’s healthy, protein-focused and very value-oriented.

Pricing, Tariffs and the Cost of Groceries

Hanacek:
All we hear about right now is tariffs and grocery prices. What are you seeing for 2026, especially given how important food affordability is politically and economically?

Black:
I won’t predict how pricing will go, but manufacturers are still seeing raw material cost increases that will likely carry into 2026. We don’t see inflation ending unless something major changes.

Consumers are extremely price-conscious, regardless of their income level. Even people with stable jobs are nervous — about job security, the economy and what comes next — and that sentiment shapes behavior.

We expect a very value-oriented shopper in 2026, likely all year. What’s interesting is that this behavior now spans income levels. Even higher-income shoppers are trading down, making grocery the first place they adjust.

AI, Retail and the Future of Grocery Shopping

Hanacek:
Your report highlighted AI’s role in grocery and the supply chain. What innovations should food and beverage processors be paying attention to?

Black:
The biggest area is agentic commerce — consumers shopping using AI platforms like ChatGPT or Perplexity. Up to 75% of consumers tell us they’d use AI for shopping in the next year. During the holidays, 30–40% already used it, mainly for research and price comparison.

Consumers are asking AI where to find the lowest price or the best health benefit. That heavily favors retailers with strong pricing, delivery and inventory reliability. Retailers are paying close attention, and this will ripple through the entire ecosystem.

Dongoski:
On top of AI, robotics is huge. CES was full of robotics players, and that spans the entire food system — from AI-driven agriculture to robotics in processing, distribution and restaurants.

This could challenge current packaging and handling designs that were built for humans. Food processors will need to adapt. Robotics will be a major force in 2026 and beyond.

Fresh Foods, Protein and the Dietary Guidelines

Hanacek:
What should the industry expect in 2026 for fresh foods and animal proteins, especially with regard to the new Dietary Guidelines?

Dongoski:
Beef remains in high demand, even with pricing challenges. Pork faces headwinds with Gen Z, which doesn’t consume much pork, especially given QSR habits.

Traditional proteins will remain important, but we’re also seeing protein show up everywhere — protein-infused ice cream, coffee, QSR meals. Consumers want protein, no matter the format.

For produce, freshness increasingly means local. Retailers are experimenting with in-store farmers’ markets, but consumers also need to accept seasonality. You can’t have everything fresh and local year-round everywhere.

Ultraprocessed Foods and the Center of the Store

Hanacek:
Beyond fresh foods, are other segments facing challenges — ultraprocessed foods, snacks, center-store products?

Dongoski:
I don’t think we need a formal definition of ultraprocessed foods, candidly speaking. Consumers decide at the shelf. They’re more educated, reading ingredient labels and avoiding products with ingredients they don’t recognize.

Health-focused consumers want more protein, more fresh food, fewer sodas and less alcohol. The shift is driven by education, not regulation.

Black:
The center of the store still matters. Younger consumers, in particular, embrace “mini treats” and social-media-driven indulgences.

This tension — health versus indulgence — has existed for decades. Convenience still wins. Consumers will pay more for time savings or unique health benefits, which keeps center-store innovation alive.

Final Takeaways for Food & Beverage Processors

Hanacek:
To wrap up, what’s one key takeaway from the report that processors should carry into 2026?

Black:
Don’t ignore how consumers are using technology. Even if it feels distant, AI is shaping how people discover, compare and choose products. Understanding health trends and technology adoption creates new opportunities to market and innovate.

Dongoski:
Now’s the time. This isn’t a fad. Don’t wait it out. Manufacturers need to challenge both their portfolios and their formulations. You may have the right products, but the formulation needs to change. This is a turning point, and companies that act now will be better positioned for what’s coming next.