Food ingredient markets in the Americas are seeing a mix of easing costs and tighter regulations. Global prices for many key inputs have finally moderated after the past few volatile years. Notably, sugar and cereal prices fell sharply in 2024 (each down over 13% from 2023), providing relief to food and beverage producers, whereas vegetable oil and dairy prices jumped over the same period, keeping some input costs elevated. On the supply chain front, logistics have largely stabilized post-pandemic, though climate events can still cause hiccups – drought at the Panama Canal recently delayed shipments. Meanwhile, regulators are increasingly scrutinizing what goes into foods.

In a precedent-setting move, California enacted a law banning several artificial additives – including Red Dye No. 3 and brominated vegetable oil – from products sold in the state. This is spurring product reformulations by food companies and could signal broader shifts toward “clean label” ingredients. For businesses in the sector, input costs are becoming more predictable, but adapting to evolving ingredient rules is an emerging priority.