Leading global food companies have issued successive warnings this week about the growing burden on consumers amid soaring prices of key commodities such as coffee and cocoa, coupled with mounting pressure from the tariff policies of former U.S. President Donald Trump, according to a report by Bloomberg.
PepsiCo: Lower Profit Forecasts Amid Rising Costs and Regulatory Pressures
PepsiCo, the maker of brands like Pepsi and Doritos, has revised its annual profit forecasts downward, citing “trade headwinds” and weakening consumer sentiment. The company noted increasing production costs alongside slowing demand for its snacks and carbonated beverages.
This comes as the U.S. Department of Health and Human Services, under the leadership of Robert F. Kennedy Jr., seeks to ban petroleum-derived artificial food dyes — ingredients used in many PepsiCo products — amid campaigns to curb sugary drink consumption.
Nestlé: Sharp Price Hikes but Weak Consumer Demand
Swiss food giant Nestlé, known for Nespresso coffee and KitKat chocolate, has been forced to implement double-digit price increases in several markets in response to surging cocoa and coffee prices. However, the company’s management acknowledged that consumer demand remained weak despite the price adjustments.
Unilever: Emerging Market Pressures Drag Down Sales Volumes
Unilever, which derives around 60% of its revenue from emerging markets, recorded a decline in sales volumes even as revenue grew due to higher pricing. The company cited steep interest rates in Latin America and broad-based demand weakness in China as key factors behind the slowdown.
Danone: Health Trends Fuel Growth
French company Danone, on the other hand, saw growth supported by increased demand for high-protein yogurt in North America and infant formula products in China. The company is capitalizing on the global shift toward healthier eating, driven in part by the rising use of weight-loss drugs like Wegovy, and demographic trends such as an aging population, which is boosting demand for specialized nutrition products.
Trade Tensions Reshaping Global Supply Chains
Amid ongoing trade conflicts, European voices led by billionaire Bernard Arnault have urged the EU to reach a deal with Washington to shield European products from new tariffs. Meanwhile, Japan is considering increasing imports of U.S. rice and soybeans as part of a negotiation strategy. China has slashed imports of several U.S. commodities — including wheat — to extremely low levels, sometimes to zero, opening the door for countries like Brazil and Argentina to capture a larger share of the global market.
Bloomberg warned that these fast-moving changes in trade policies could significantly reshape global food supply chains, especially as U.S. farmers face soaring bankruptcy rates. At the same time, food giants like Brazil’s BRF are expanding into markets such as Saudi Arabia to strengthen regional food security.
Consumers Facing a New Wave of Pressure
As global trade instability continues and price fluctuations persist, projections indicate that consumers — particularly in developing markets — are likely to encounter further challenges in maintaining affordable and healthy lifestyles amid a new wave of food price increases.
