Snack Food Manufacturers NAICS 31191

May 30, 2026 - “Ultraprocessed” Label Threatens Manufacturers

• Food manufacturers face growing political and regulatory pressure targeting ultraprocessed foods as Health Secretary RFK Jr and the "Make America Healthy Again" movement push for stricter labeling, ingredient reviews, and nutrition standards, The New York Times reports. For snack food manufacturers, the push could increase scrutiny of artificial ingredients, additives, preservatives, and highly-processed products commonly used in chips, cookies, and packaged snacks. Future policies could include front-of-package warning labels, tighter ingredient regulations, and changes to federal dietary guidelines that discourage consumption of ultraprocessed foods. Snack manufacturers would likely face higher reformulation costs, increased compliance requirements and pressure to develop healthier product lines with simpler ingredients and cleaner labels. Marketing strategies and consumer demand could change as health concerns around processed foods gain more political and public attention. The Times noted that defining “ultraprocessed” is challenging regulators, and it's unclear when a definition will be released.
• In a pivot to functional snacking, PepsiCo is cutting nearly 20% of its SKUs in the US, Washington Morning reports. PepsiCo’s move to streamline its snack portfolio signals broader shifts impacting the snack food manufacturers. By eliminating underperforming SKUs, the soda-and-snack giant is prioritizing operational efficiency, cost control, and margin protection amid inflation and rising supply chain complexity. This approach allows manufacturers to focus production, distribution, and marketing on high-volume, high-margin products, improving inventory management and retailer relationships. PepsiCo’s snack reset also reflects changing consumer preferences, as demand shifts toward healthier, simpler, and functional snacks. Manufacturers may need to reduce legacy or niche offerings to free up resources and shelf space for innovation aligned with wellness trends. Changing consumer eating habits and economic pressures are pushing brands to focus on top-performing brands and SKUs and become more data-driven and selective, while balancing cost pressures and changing consumer preferences.

• 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 snacks, 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 snack‑food manufacturers, especially those reliant on sugary, high‑carb snacks, 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 snack food manufacturers fell 1.8% in April compared to a year ago, after rising 0.7%% in the previous April-versus-April annual comparison, according to the latest US Bureau of Labor Statistics data. At retail, snack prices rose 1.4% year over year in April and 0.6% versus March, according to the Labor Department’s April 2026 Consumer Price Index. Employment by the industry shrank 4.6% YoY 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. Producer prices and wages at snack food manufacturers are near record high levels amid declining after-tax profits for food companies.