Sustainability, clean label, and tariff fallout: This week’s top industry trends

Evolving clean label and sustainability expectations are reshaping the competitive landscape while fall out from the Trump administration’s ‘liberation day’ tariffs rocks the global supply chain and economy.

Trump Administration tariffs to impact global supply chain

The Trump administration’s latest executive orders have triggered some of the most sweeping tariff hikes in decades, setting a global baseline of 10% under what Trump declared Liberation Day.

China, the EU and Vietnam face the steepest tariffs – 54%, 46%, and 20%, respectively – targeting key food imports like cheese, chocolate and olive oil.

While a majority of CPG products are manufactured in the US, essential ingredients are not available domestically and the high costs of manufacturing from reciprocal tariffs will only increase ingredient scarcity and limit consumer access to these products, Tom Madrecki, VP of supply chain resiliency for Consumer Brands Association, wrote in a statement.

“However well intended, the success of the President’s America First Trade Policy, must recognize the US companies that are already doing it the right way but depend on imports for specific ingredients and inputs that cannot be sourced domestically. Reciprocal tariffs that do not reflect ingredient and input availability concerns will inevitably raise costs, limit consumer access to affordable products and unintentionally harm iconic American manufacturers,” Madrecki said.

For retailers and manufacturers already operating on razor-thin margins, rising food prices are a growing concern, Leslie Sarasin, president and CEO of FMI – The Food Industry Association, said in a prepared statement.

“The food industry will have little choice but to pass on these import taxes to remain in business and continue serving customers,” she wrote.

Still, FMI says it and its members remain open to collaboration.

“FMI and our member companies stand ready to work with the Trump administration to ensure we deliver on the President’s goals of strengthening the economy, creating American jobs and making everyday purchases more affordable for the 100 million Americans we serve each week,” she added.

Meanwhile, the agricultural sector is raising alarms over potential trade fallout. The Almond Alliance, which represents US almond producers, supports addressing trade imbalances but warns against retaliatory tariffs.

“When US tariffs are imposed, the resulting retaliatory tariffs could significantly disrupt US almond exports, depress farm prices and further shift market share to competitors,” Alexi Rodriguez president and CEO of the Almond Alliance, wrote in a letter to USDA Secretary Brook Rollins and U.S. Trade Representative Jamieson Greer.

California, which produces 80% of the world’s almonds – 73% of which are exported – could see its strong presence in the global market erode if tariffs lead to further trade disruptions, according to Almond Alliance.

Story: European food and beverage enraged at Trump ‘Liberation Day’ tariffs

Non-UPF Verified’s pilot program aims to redefine ultra-processed foods

The Non-UPF Verified project launched its pilot program aimed at providing consumers with a certification for products that are free from ultra-processed ingredients. The initiative responds to growing concerns about the health impacts of highly processed foods.

While legislation, like California’s executive order earlier this year, that hammers down on removing ultra-processed foods and dyes, other guidance like the Dietary Guidelines Advisory Committee pushed for more research on the health impacts of UPFs citing a nuanced approach to differentiating between processed and fortified foods.

By verifying products that meet its rigorous standards, the program expects to help guide consumers toward healthier, minimally processed options and promote transparency within the food industry, according to Megan Westgate, founder, Non-GMO Project and Non-UPF Verified.

Story: Non-UPF Verified debuts at Expo West to redefine processed food standards

Regenerative ag certification: A must for CPG startups

With sustainability becoming a central focus for consumers, more CPG startups are seeking regenerative agriculture (regen ag) certification to differentiate themselves, as discussed in a podcast episode of Founders’ Fundamentals.

Within the seven main regenerative certification bodies, startups can choose between Regenerative Organic Certified, Land Market Verified, Regenified, Certified Regenerative by a Greener World, Soil Carbon Verified, Ethos Regenerative Verified and Demeter Biodynamic Certification.

While the certification process can be challenging – balancing certification costs and integrating sustainable practices into supply chains – experts encourage startups to investigate their supply chain to identify which certification aligns with their business.

Podcast: Regenerative Agriculture: What to know before getting certified