Perishable Prepared Food Manufacturers NAICS 311991

May 30, 2026 - Organic Food Sales Outperform

• US organic food sales reached $70.1 billion in 2025, accounting for 6.1% of the overall food market, the Organic Trade Association reports. Sales of organic food grew 6.9% year over year, three times as fast as the broader food market. For food manufacturers, the continued expansion of organic products signals stronger demand from grocery retailers, restaurants, and consumers for certified organic foods across produce, dairy, grocery, and protein categories. Manufacturers may benefit from higher sales volumes and premium pricing opportunities, but could also face increased pressure to strengthen organic sourcing networks, maintain certification compliance, and improve supply chain transparency. The OTA report noted especially strong growth in organic produce ($22.7 billion in 2025 sales), dairy, eggs, and meats, notably organic beef, up 44% compared to 2024.
• The US Food and Drug Administration announced in March that it intends to extend the deadline for compliance with the Food Traceability Rule until 2028. The 30-month extension gives perishable prepared foods manufacturers more time to implement complex traceability systems, easing near-term compliance pressure and costs. The rule requires enhanced recordkeeping and tight coordination across supply chains, which can be challenging for companies that rely on multiple suppliers and perishable ingredients. The extension reduces immediate operational and capital strain tied to new tracking systems, allows more time to align data-sharing with suppliers and distributors, and supports phased adoption of technology and processes. However, the delay also prolongs exposure to food safety risks and potential recall inefficiencies, which are critical for perishable products. Industry groups emphasize that companies should still invest in traceability during the extension to meet future requirements and align with global standards.

• New research from consumer insights firm Circana finds that households using GLP-1 medications for weight‑loss or diabetes are projected to account for 35% of all US food and beverage units sold by 2030, up from about 23% at present. Because GLP‑1 users are increasingly focused on weight management, their shopping patterns are shifting dramatically. They’re buying fewer carb- and sugar-heavy foods, while favoring higher‑protein, high‑fiber, and healthy‑fat foods. Even though their total retail food spending dips, they still outspend non-users overall. For food manufacturers, especially those reliant on sugary, high‑carb meals, this trend signals reduced demand. To stay relevant, companies will likely need to reformulate or expand into products aligned with health‑centered, high‑protein, low‑sugar diets and adjust their marketing to appeal to this growing group of shoppers.
• Producer prices for perishable prepared food manufacturers rose 1.8% in April compared to a year ago, after rising 3% in the previous April-versus-April annual comparison, according to the latest US Bureau of Labor Statistics data. By comparison, retail prices of frozen and freeze dried prepared foods dipped 0.1% year over year in April, while prepared salad prices rose 1.1% over the same period, according to the Labor Department’s April 2026 Consumer Price Index. Employment by miscellaneous food product manufacturers dipped 0.7% in March, while the average wage at food manufacturers rose 1.4% YoY in April to $24.27 per hour, just shy of its peak in January, BLS data show.