Read about the latest updates in tariffs on food, and food prices and the likely hike in prices with the banning of artificial food dyes. You’ll also get a view into the changing food environment with what’s new on shelves to how people are accessing and paying for food.
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Tariff uncertainty is shaking up the food industry, with experts warning that thousands of grocery items could be affected if the pause doesn’t hold. At the same time, momentum is building around a potential ban on artificial food dyes—which could lead to even more price hikes. A troubling Buy Now Pay Later trend continues with DoorDash offering this option, kids are getting Uber Eats deliveries at school, and Michelle Obama is expanding her healthier drink line. Plus, marketers are doubling down on health messaging—from immunity-boosting cereals to slim-can energy drinks meant to signal wellness and sophistication.
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Although the U.S. tariffs have, for the most part, been paused for 3 months, one can’t predict if that pause will hold. A 26 minute video from News Not Noise’s Jessica Yellin w/Dr. Toni Farmer, University of Pennsylvania, illustrates the far-reaching effect of tariffs on the food system. Phil Lempert, food industry expert, guesstimated that about half of the approximately 40,000 items on shelves would have been affected by tariffs in some way: either by a tariff on the food or an ingredient in the food. Finally, grocers don’t like uncertainty and shoppers will seek the lowest price in the face of higher prices from tariffs, Walmart will likely benefit from this. The banning of artificial food dyes has taken center stage and with it, another likely hit to food prices. The Wall Street Journal looks at which foods will be hit the hardest (and likely cost more) if artificial food dyes are banned.
A look at some changes on the food scene: DoorDash joins Grubhub and Instacart as the latest online food delivery platform to allow BNPL (Buy Now Pay Later). Some children in school are using Uber Eats to deliver food to them. Michelle Obama has added to her PLEZi lower sugar juice drinks with a healthier sports drink. A new report from the Food Marketing Institute finds that 1/3 of shoppers discover fruits and vegetables on social media.
Two new cereals look to attract shoppers by promoting their ability to support immunity and healthy bones. Ever wonder why energy drinks are in slim cans? It’s a marketing ploy (think perceptions of sophistication, health and lightness).
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