Navigating the Evolving Food & Agriculture Landscape

Consumer preferences in the food and agriculture sector are shifting in response to economic pressures and evolving health-conscious trends. Inflationary challenges are leading to more selective purchasing, while demand for cleaner food options continues to rise. These trends, combined with potential tariff-driven price fluctuations, are shaping the industry’s future:

•Natural product sales are accelerating, outpacing conventional CPG growth across all U.S. retail channels.

• Consumers prioritize clean-label ingredients, with 78% actively seeking food and beverage options with recognizable, natural components.

• Retailers are expanding shelf space for emerging brands to meet shifting consumer demand.

• Private label products are gaining ground, intensifying competition for traditional brands.

As these forces reshape the market, key questions emerge. Will consumers adopt a “barbell” approach—splurging on premium, better-for-you brands while turning to private labels for savings? Will leading CPGs accelerate acquisitions to stay competitive? And how can growers and direct-to-consumer brands capitalize on these evolving trends?

At G2 Capital Advisors, we provide strategic M&A and capital-raising solutions to help food and agriculture businesses navigate these market dynamics. Our deep sector expertise enables us to support growth, optimize value, and drive successful transactions.