The Italian food & beverage industry, long a pillar of national identity and economic strength, is facing a turbulent era.
According to the 2025 report “The Roadmap of the Future for Food & Beverage” by The European House – Ambrosetti, three interconnected crises—energy inflation, raw material cost surges, and labor shortages—are placing significant strain on the sector. Companies are increasingly turning toward sustainability, not just from ethical convictions but because consumers demand it. However, this transition is anything but smooth.
The Triple Threat: Energy, Raw Materials, and Labor
The sharp rise in energy costs remains the most impactful factor, affecting 62.4% of businesses. This trend is even more pronounced in the food sector, where 18.5% more companies report difficulties compared to the beverage segment. The inflationary pressure on raw materials follows closely, impacting 46.6% of companies—particularly SMEs. Labor shortages, cited by nearly a quarter (24.7%) of respondents, have seen the most dramatic increase in concern, rising over 9% from 2024.
While these issues dominate, others persist in the background: climate change, raw material availability, monetary policy instability, and geopolitical tensions are all undermining day-to-day operations.
A Sector on Edge
The cumulative effect of these “poly-crises”—from the pandemic to climate extremes—has left 36.5% of agri-food operators worried about their company’s future, up from 2024. In southern Italy and the islands, the figure jumps to 45.4%. The most alarmed sub-sectors are fruits and vegetables (90% of companies concerned), dairy (72.6%), and meat (62.9%).
Facing this uncertainty, nearly 20% of businesses have adopted new adaptation strategies, particularly through process innovation (37.7%) and product innovation (36.8%). A growing number are also emphasizing sustainability, with 64% actively pursuing or planning sustainability upgrades. Among large enterprises (250+ employees), that number climbs to 100%.
The Sustainability Conundrum: Growth vs. Costs
Sustainability may be the buzzword of the decade, but aligning it with profitability remains a monumental task. Most companies prioritize energy efficiency and circular economy practices, but the barriers are significant. These include high technological costs (31.8%), overly complex regulations (28%), lack of financing (17.7%), and a deficit of skilled professionals (10.7%).
Despite widespread acknowledgment that sustainability will be a key consumer expectation—especially in the beverage sector, where 60% of companies see rising demand—there's a stark contradiction: 37% of companies report consumers are unwilling to pay more for sustainable products.
Consumer Trends: A Shift Toward Local, Transparent, and Affordable
The 2025 consumer landscape is shaped by strong preferences for:
- Made in Italy (+7.5%)
- Zero-mile products (+7.8%)
- Essential and low-cost items (+4.6%)
- Product traceability (+10.7%)
Organic, premium, and private-label products are also growing, though at a slower rate. However, consumer price sensitivity remains acute. In sectors like fish (87.4%) and dairy (75.5%), companies overwhelmingly report that buyers are unwilling to pay a premium for sustainability. Only the meat sector (52.8%) bucks the trend, with growing openness to higher costs.
Institutional Support: Too Little, Too Vague
Only 14.6% of surveyed companies believe national or EU policies are adequate to promote sustainable yet competitive practices. Sectors like fish (97.1%), fruits and vegetables (96.9%), and meat (95%) are particularly critical. There’s a strong call for clearer, stronger institutional backing.
What companies want from the government:
- Sustainability-focused incentives (31%)
- Anti-inflation measures (25%)
- Better traceability systems (22%)
Conclusion: The Road Ahead
The Italian food & beverage industry stands at a pivotal moment. Sustainability is no longer optional—it’s a consumer and planetary imperative. Yet companies face a financial tightrope: innovate or risk irrelevance, but don’t expect consumers to foot the bill. Without robust, targeted support from institutions, and a collaborative strategy across the supply chain, the sector’s ability to navigate the future remains under threat.
Source: WineNews