Datassentials recently published their 2025 Trends Report which forecasts the next wave of flavor, food and beverage trends set to shape menus and consumer preferences in the coming year and beyond. This year’s spotlighted food and beverage trends to watch in 2025 include saffron, next-level cocktail fat washing, pikliz, and pastina.

“2025 Food, Flavor & Beverage Trends” is a valuable resource for foodservice professionals who want to stay ahead of the curve on the latest menu trends, as well as make informed decisions based on tracked consumer habits. If anything is certain, it’s that nothing is certain! As the economy reacts to the 2024 election and Gen Z pushes new consumer behaviors, many business owners are looking for insight on how to navigate the evolving landscape. With so much to take into consideration, it’s important to build a strong team around your foodservice industry business. For distributors looking for a competitive edge in their supply chain and pricing, become a partner with Honor Foods.

Foodservice Industry and Economic Forecasts

The current foodservice industry is seeing a lot of changes due to multiple economic and political factors. According to the Datassentials report, a driving factor in 2025 trend shifts will be, “A reaction to global uncertainty that’s driving indulgence, little treat culture, and more.” While responsiveness to quick trends may be an increasing concern, there are solutions. One way to avoid missing a food and beverage trend with your foodservice clients is by partnering with a redistributor. Distributors who partner with a redistributor have more access to ingredients and products, streamlined shipping routes, and better pricing opportunities. You can mitigate the risk of ingredient inaccessibility by partnering with Honor Foods.

Amidst the rise of new casual dining formats, splashy social media-friendly reinventions of bakery classics, and a new wave of functional foods, your branding should keep value in mind. In 2025 and beyond, value will no longer be just about dollar signs – in fact, we already saw value trending in that direction this year. The way consumers think about value and what it means has shifted, and the value strategies businesses create in 2025 should take into consideration this more nuanced and complex “new value.” The industry should think of ways (hello value meals!) to keep lower-income consumers coming in the door, but also not forget the very impactful higher-income consumers as well who may be more motivated by premium and innovative offerings. Essentially, the industry needs to find ways to appeal to both high- and low-income consumers to maximize growth.

The Datassentials team asked several important questions in their survey, which gathered data in October 2024.

When deciding if a food or beverage at a RESTAURANT is a good value or not, what factors are most important to you?

• 69% Great taste
• 56% Quality of product
• 41% Portion size
• 37% Low price

When deciding if a food or beverage at a GROCERY STORE is a good value or not, what factors are most important to you?

• 56% Quality of product
• 52% Great taste
• 47% Low price
• 29% Healthy/nutritious

The data shows that low prices are more important for home cooking than at restaurants, furthering treat culture and expectation to spend more when going out to eat. According to the Datassentails 2025 Food forecast Webinar, consumer spending on prepared food and non-alcoholic beverages is projected to reach $921.7 billion in 2025, from $895.1 billion in 2024. The next-highest segment spending is forecast in casual dining, at $153.8 billion, followed by fast-casual at $81.5 billion. Consumers are price-conscious in all sectors, making it even more important to have a competitive edge on pricing with Honor Foods redistributor.

The foodservice industry does not stand alone. A headwind for one sector can be a tailwind for another and vice versa. However, at the moment, overall debt in the country is at an all-time high. In the Datassentials webinar for 2025 Foodservice Forecast, it was reported that in 2024, 47% of credit card holders carried a balance while 53% of credit card holders paid off their balance every month. Interest rates are beginning to decline, but housing prices and rent costs are all peaking and increasing disproportionately to actual income. Oftentimes, when consumers begin to restrict spending, businesses eliminate the middleman to save costs. But in the case of redistribution, the middleman can actually save businesses money for using LTL shipping by consolidating orders from multiple manufacturers, optimizing delivery routes and minimizing transportation costs. Those in the supply chain of the foodservice industry can gain a competitive advantage by partnering with a multi-brand business like Honor Foods. Having a partner that also offers in-house brands such as Sunny Morning Foods, Sommer Maid, Colony Lane, and Valley Fresh, will help distributors get variety and choice without spending extra.

The foodservice industry is expected to see real growth of 1.0% in 2025, compared to 3% nominal growth which is due to inflationary price increases. This growth is driven by expected overall Gross Domestic Product (GDP) growth and a continued strong labor market. Inflation has started to fall and is expected to level out in 2025. This means that nominal growth for the industry overall will be the smallest we have seen since the pandemic. Adding to those statistics from the 2025 Foodservice Forecast, the foodservice industry is up against rising prices and shrinking disposable income. Operator spending is projected to hit $323.6 billion. By segment, QSR and casual dining are expected to lead that investment, at $84.2 billion and $58.4 billion, respectively, followed by supermarket prepared, at $26.7 billion. While the foodservice industry navigates increasing prices and tightening wallets, distributors are increasingly looking for more and more competitive prices. Many have turned to a redistributor to get those prices, because, with a redistributor, distributors don’t have to buy large quantities of products, but can instead purchase what they need through the redistributors relationship with the vendor.

Millennials in the Foodservice Industry

Much of the data on restaurants for 2025 is still tied to generational preferences. The Datassentials team reported that “71% of consumers are excited about new food and beverage trends in 2025.” Of that, Gen Z reported 78% are more excited compared to Boomers with 59% showing excitement. Millennials are also shaking up trends as they age into their 30s and 40s and take up family-centered preferences. As this generation impacts overall consumer spending, it’s important to familiarize yourself with the foods, flavors, and beverages that skew towards Millennials today, the diets they’re following (or not following anymore), how integral technology and social media are to their lifestyles, their grocery shopping habits, what they want from foodservice for their kids, and more. Think cold brew, energy drinks, and sparkling water.

Datassentials operator insights reported that the majority of operators say millennials are a target market for them:

• 43%: Yes, Millennials are a major target for us.
• 36%: Yes, Millennials are a minor target market for us.
• 22%: No, Millennials aren’t a target market for us.

When considering how Millennials are changing their behaviors for families, it’s important to consider that your target demographic may actually span multiple generations. The report encourages restaurant owners and grocery stores to consider not just Millennials, but their Gen Alpha children too:

• 49% of Millennials always take their kids with them when they go out to eat at a restaurant.
• 35% of Millennials always take their kids with them to the grocery store.

While Millennials have much of the attention and purchasing power in 2025, there’s still other generations to appeal to. For example, 62% of consumers are interested in trying new and unique coffee drinks. Of that survey, Boomers are least interested at 44% versus all other generations. Comparatively, that number is still high. Boomers in retirement have shown a renewed interest in food and are often choosing to age in more urban and food-forward locations than prior generations.

The industry tailwinds, factors, and events that help increase growth or cause positive effects on profits and revenue, include lower interest rates and craving experiences. There are still many drivers encouraging people to make foodservice visits. While the foodservice industry deals with competition from inflation and rising costs of living, it’s helpful to know that people’s decisions are increasingly impacted by price. When asked where spending was cut, 51% of consumers responded with restaurant meals and dining out, with clothing, shoes, and apparel not far behind at 50%.

High costs may be limiting growth for the 2025 restaurant industry. Historically, high interest rates have meant that capital is expensive to access. It is more costly to build new units and to borrow money for improvements. While interest rate reductions are expected, the overall economic climate remains uncertain, necessitating a cautious and strategic approach.

Health and Sustainability

The 2025 foodservice industry will be heavily influenced by a focus on health and sustainability. Consumers, particularly Millennials, who are coined as the original foodie generation, are increasingly prioritizing wellness and ethical sourcing. This shift is driving demand for innovative water and hydration options, from sparkling to functional waters. Additionally, there’s a growing interest in global coffee cultures, with consumers seeking out third-space experiences and unique brews. According to the report, 57% of consumers are interested in global coffee and cafe cultures, including thirds spaces where slowing down and having a sit-down coffee is the norm, versus a drive-through or on-the-go coffee. A third space is a public place that is neither home nor work, where people can relax, socialize, and engage in community activities. Coffee shops, libraries, and community centers are common examples of third spaces. These spaces offer a sense of belonging and connection, fostering a sense of community and well-being.

Meanwhile, eco-conscious kitchens are embracing sustainable practices, and new nutrition standards are reshaping food labels and certifications. As consumers become more discerning, transparency and sustainability will be key factors in their purchasing decisions.

A Shifting Foodservice Landscape

The foodservice industry is experiencing a significant shift in consumer expectations. A notable decline of 23% in dining-out expectations has been observed, particularly among Gen X, where the decrease reaches 33%. In addition, U.S. population growth is increasingly driven by immigration rather than birth rates. This means that our population is increasingly racially and ethnically diverse, and foodservice offerings may need to shift to reflect these changes.

Revisiting ‘a little treat culture,’ consumers view foodservice as something nice that they want and deserve. Life has gotten financially harder for some households in the last year and although that means they quite literally may have less money to spend, it also means that they are more likely to want to treat themselves. We see as evidence of this the success of restaurant brands that are focused on snacking and smaller/indulgent occasions (such as coffee and cookies). Currently, consumers tend to feel like their own financial situation is better than that of the country overall and that feeling of doing relatively better means that they might feel more justified in spending a little extra money. Heading into the new year, in-person experiences continue to propel the industry. We are past the phase of massive pent-up demand from the pandemic, but there is still a lingering effect on how consumers spend their time and money. This is excellent news for an industry that is focused on pleasure and joyful experiences.

Finally, Labor challenges are in fact having an impact on foodservice industry operations. National unemployment saw a slight uptick in 2024 at 4.2%. Compared to the industry numbers, Datassentials reported that the foodservice unemployment rate increased from 5.5% to 6.5% from May 2023 to August 2024. Labor is one of the major challenges for operators, but not the only. Operators are reporting challenges that include food costs (73%), labor costs (55%), hiring (35%), staff retention (28%), and consumers visiting less and spending less at 22%. With such high numbers, restaurant owners can take extra care to see they are providing competitive workplace environments and investing in their marketing practices to bring in new customers. In 2024, restaurant openings and closings have both decreased, but we continue to see more openings than closings. That means there are still new restaurants looking for a foodservice distributor to help stock their shelves. With all of the current operational challenges, don’t let stocking food products for your restaurant owners be one of them! Partner with HF to streamline business for your clients.

And that is the Foodservice Forecast for 2025! Don’t just keep up with the trends; stay ahead of them — become a valued Honor Foods customer today.