Food manufacturers are navigating a rocky road that shows no sign of abating. Yet, despite these trading ordeals the industry continues to adapt to changing consumer demands and the regulatory landscape.
The continuing trend towards health and wellness means consumers are looking for healthier foods that are lower in fat, salt and sugar that also offer other functional benefits.
According to Innova Market Insights, 64% of UK consumers are actively engaged in health and wellness, while 54% are reducing their consumption of processed foods.
This is backed by data from NIQ which reveals that 66% of UK shoppers say they are proactive in doing things to improve their health and wellness on a regular basis, which includes exercising, monitoring health metrics and watching what they eat.
It’s not just consumers that are on the health journey. It is also on the political agenda, with the Government recently publishing its 10-year health plan for England which indicated its intention to repeal HFSS rules restricting volume price promotions and aisle placement in favour of ‘Smarter regulation.’
Mandatory health reporting: A new era for food manufacturers
Part of that plan is the proposed introduction of mandatory healthy food sales reporting for all large food companies, which will likely be used to set new targets on the average healthiness of sales.
Such reporting will inevitably influence not only brand owners and manufacturers, but also the entire ingredient supply chain.
While mandatory reporting might seem like another challenge for an already struggling sector, it is something that industry figureheads have been calling for, especially as many of the larger food companies have already been spearheading developments in healthy eating.
FDF head of diet and health Amy Glass told Food Manufacture that the news is welcome. But she issues a note of caution saying the FDF is asking that the Government to work in partnership with the industry to make sure that any metrics are practical.
Glass was keen to point out that much product development in the removal of HFSS has been through voluntary policies as well as regulation. She highlights that there had been “positive results” in many areas especially in categories such as yogurts and breakfast cereals, while data shows that member products now have a third less salt, a third less sugar and a quarter less calories than they did 10 years ago.
“We asked members how much they invest in healthier product innovation, and we found that last year companies invested £180 million in healthier product innovation. So that’s reformulation, tweaking current recipes of popular products, but also launching new products as well and reducing portion sizes in some categories,” she said.
“It is the priority for our companies in terms of how we can support the nation’s health.”
But what next for HFSS, ingredients and food manufacturers in this changing landscape?
How will the new health agenda impact ingredients?
Lallemand Bio-Ingredients, category manager Silvia Soragni says
manufacturers, especially those producing ready meals, snacks, and beverages, have a particularly strong responsibility to take action.
“Unlike when consumers can choose how much sugar or salt to add to a cup of tea or to a homemade dish, these products come pre-dosed. The consumer relies entirely on the manufacturer’s formulation choices. Therefore, ingredient selection becomes a key lever for healthier diets,” Soragni explained.
“Innovative solutions—such as flavour modulators, umami-rich ingredients, natural sweetness modulators and fat-mimetic systems—allow producers to deliver the same satisfaction with lower levels of sodium, sugar or saturated fat. These technologies make it possible to reconcile public health objectives with consumer expectations.”
However, Soragni believes that to achieve meaningful progress it cannot rely on the food industry alone. It also requires consumer education and awareness to help translate nutrition into practical advice for consumers.
In this context, she believes the ingredients industry becomes both a technical partner and a strategic enabler.
“The role is not simply to provide substitutes, but to deliver holistic formulation tools that help manufacturers meet health criteria and maintain consumer appeal. Flavour and texture systems, alternative protein and functional fibres are good examples of how innovation can make healthier products commercially viable.”
While Melissa Boulton, marketing director UK & Ireland at Givaudan Taste & Wellbeing agrees, she points out that industry players face the challenge of creating desirable products without compromising on taste, budget or scalability. She highlights the impact of sugar with any ingredients needing to master sweetness modulation and masking off-notes, such as aftertaste and bitterness.
“However, sugar reduction remains one of the most complex challenges in food science. Sugar plays multiple roles — it delivers sweetness, texture, mouthfeel and balance. When you remove sugar, the complexity and delicacy of a sweet flavour can be lost too. With the right flavour science and formulation expertise, it is entirely possible to reduce sugar while keeping the same level of pleasure and consumer acceptance,” Boulton said.
Givaudan’s own Moods & Emotions 2.0 research, conducted with over 76,000 consumers in 13 European countries, has shown that taste remains the number one purchase driver across all age groups, even as consumers seek healthier, functional alternatives.
While some of the biggest ingredient trends today centre on health, sustainability and emotional wellbeing, she points to this being reflected in the rapid growth of the functional food and beverage category, with 57% of consumers already engaged and 74% increasing their intake within six months (FMCG Gurus, 2024).
Ingredients supplier Cargill says that while the regulations aim at improving the nutritional composition of foods it has accelerated innovation across the food industry, prompting manufacturers to rethink not just individual ingredients, but how entire formulations are built.
The major challenge is focusing on how fat, sugar and salt can be reduced without sacrificing the sensory experience.
At Cargill this has fuelled continued investment in ingredient systems that help deliver on both health and indulgence, while providing alternatives to sugar and salt.
“Rather than simply avoiding sugars or fat, shoppers seem to be gravitating toward ingredients they recognise and trust—those that are nature-derived, label-friendly and purpose-driven. This means ingredient decisions are now based not just on functionality, but also on their perceived health benefits, traceability and broader brand values,” added Burcu Keskiner, food & beverage category senior director at Cargill.
“In this context, fibres, postbiotics, plant-based oils, and fermentation-derived ingredients are gaining momentum as they tick multiple boxes: health, a focus on sustainability, and consumer acceptance.”
These challenges mean that there is an ongoing fundamental shift in how food and beverage companies approach product development.
Bastian Hörmann, global marketing director, sweet goods, dairy & specialized nutrition, at ADM said: “Product developers must now find creative ways to maintain crucial taste and functionality, leveraging combinations of sweetening solutions derived from natural sources, salt substitutes and alternative fats, along with flavour modulation technology, to improve nutritional profiles without compromising sensory appeal.”
But it’s not just about HFSS it is also about wider health demands.
ADM research shows that consumers across all regions are looking to reduce carbs, calories, fat, sugar and salt, while fibre (69%) and protein (66%) are the top two nutrients global consumers look to increase in their foods and beverages.
“As interest in varied protein sources continues to grow, there is an opportunity for brands to combine high protein content with diversity by introducing products featuring plant-based proteins such as soy, pea, and bean varieties, whether used alone or in blends,” he continued.
“Clean labels have also become equally influential in shaping ingredient innovation. Consumers desire familiar ingredients they deem as “closer-to-nature,” an important factor for consumers increasingly scrutinising product labels.”
While demand for health and functional ingredients is growing consumers still want indulgence and taste, which creates an inevitable dichotomy for producers.
Natural solutions take centre stage
Crispin Gell, head of customer partnerships at flavour specialists I.T.S said that the major challenge is that consumers don’t want to compromise despite wanting HFSS lowered or removed.
“The brands that are quietly improving nutrition in the background and shouting about flavour up front using natural flavours and masking solutions are the ones that are winning,” Gell noted.
“The growth in uptake of weight loss injections means that consumers are now more aware than ever of the function of protein on the body and are looking for it in all types of products. Even cakes and breads now have on-pack claims about added protein.”
Interestingly, despite this, Jacqui Passmore, marketing Llead West EU & AMEAP at Dawn Foods says the bakery sector not seen the impact of HFSS as much as expected.
“In sweet bakery, reducing fat, salt and sugar to be HFSS compliant can have a huge impact on both flavour and texture, which are the two key elements that consumers are looking for in sweet baked goods,” said said.
“As a result, it can be a considerable challenge for manufacturers to deliver appealing flavours, textures and mouthfeel. Many flavours require the presence of fat and/or sugar for the palate to properly recognise them.”
As part of the sugar reduction story, bakery is making more use of ingredients which use fruit and other natural flavours to add sweetness.
“The interesting point with HFSS is that where sweet bakery products have a high fruit content or high fibre content, the HFSS score is reduced, and this is a point that bakers seem to be capitalising on.”
Sustainability and ingredients
While the battle over HFSS rumbles on, ingredients are moving beyond just replacing products such as salt, sugar and fat. With more innovation ongoing in wider ingredients with protein, gut health and biotics making waves, there is one area that food manufactures are not compromising on and that is on their sustainability credentials.
Vera Karmeback, global head of sustainability, at Oterra, the natural colour supplier, says that food companies are continuing to invest in sustainability and particularly climate resilience to safeguard their supply chain ingredients while improving efficiencies.
“The Food and Agricultural Organisation estimates that 30% of global emissions are actually caused by the food sector. So it is substantial, and that is why it’s so high on companies’ agendas. And it is why we’re also seeing that particular conversation around climate and carbon footprints,” she said.
Oterra focuses on the production of sustainable, natural colourings. For example, its Artic Blue natural colouring is made with spirulina, is cultivated in Iceland in a high-tech production facility next to a geothermal power plant that provides 100% clean energy, waste heat and carbon dioxide. It is carbon neutral, meaning a major reduction in water and land use.
She highlights that innovations such as this are at the forefront of ingredient and product development and are meeting increasing demands for more sustainable supply chains.
“What is the land that we’re actually occupying? There’s pressure on land. How can we secure the future supply chain? The planet is not growing, it’s not bigger, we have a limited amount of land,” she added.
Whether food manufacturers are looking to reformulate or respond to consumer health demands there is no doubt things are changing.
HFSS continues to hurtle towards the food sector with the goal posts continuing to change so they need to hold on for the ride.
