With the final weeks of 2024 on the horizon, the food industry finds itself at a pivotal moment. Consumer trends, supply-chain dynamics and macroeconomic conditions have shaped the year into one of innovation and resilience. While inflation has eased slightly, it continues to influence consumer choices, pushing many to prioritize value-driven purchases. In response, food companies have stepped up, offering a range of products that cater to budget-conscious consumers and those seeking premium, healthier or more sustainable options. 

As we move toward 2025, the focus of the food industry is shifting toward sustained growth and innovation. Continued momentum in plant-based and high-protein categories, alongside advancements in digital transformation and international expansion, is likely to lead the way. These evolving trends position the food industry for progress despite ongoing challenges like labor shortages and global uncertainties.

In this evolving landscape, a few companies stand out as trendsetters, setting the stage for robust growth in the coming year. Investors seeking exposure to the dynamic food space should pay close attention to Tyson Foods, Inc. (TSN Quick QuoteTSN - Free Report) , Pilgrim's Pride Corporation (PPC Quick QuotePPC - Free Report) and Freshpet, Inc. (FRPT Quick QuoteFRPT - Free Report) as top picks for their portfolios.

What’s Cooking in the Food Industry?

Over the past year, consumer behaviors have been reshaped by economic challenges and shifting priorities. Health and wellness are top concerns, with consumers flocking to organic, plant-based and functional foods. Convenience also continues to be a major factor, boosting demand for ready-to-eat meals and snacks. Meanwhile, e-commerce has fundamentally changed how Americans shop for groceries, making online ordering more common.

However, it hasn’t all been smooth sailing for food companies. Companies have faced fluctuating commodity prices, supply-chain disruptions and evolving consumer spending habits. To stay firm, industry giants have doubled down on technology, innovation and diversifying their product offerings. Strategic pricing actions, productivity enhancements and supply-chain optimizations have also helped industry players protect margins in a competitive environment.

In 2025, industry experts expect favorable demand across staple and specialty food categories as companies tap into shifting consumer preferences. Investments in automation and digital platforms are expected to boost efficiency and foster customer loyalty. At the same time, international expansion and creative product launches are likely to open new revenue streams. For investors, this is a prime opportunity to explore stocks poised to thrive in this evolving market.

Tyson Foods Stock: A Must Have?

Tyson Foods remains a powerhouse in the protein segment, offering a wide range of chicken, beef and pork products. This Zacks Rank #2 (Buy) company’s strategic initiatives, including automation and supply-chain optimization, have helped it navigate challenging market conditions, driving a 14% rally in its stock price so far this year. Tyson Foods has also made significant strides in expanding its value-added and prepared foods segments. These efforts, combined with its sustainability initiatives and international expansion plans, position the company for long-term growth.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for TSN’s current and next fiscal year earnings per share (EPS) has risen from $3.30 to $3.51 and from $3.93 to $4.12, respectively, over the past 30 days. These estimates suggest respective year-over-year growth of 13.2% and 17.5%. Tyson Foods has a trailing four-quarter earnings surprise of roughly 57%, on average.

PPC Worth Savoring for 2025

Pilgrim's Pride, which produces, processes, markets and distributes fresh, frozen, and value-added chicken and pork products, is poised for growth in 2025. The company’s strategic focus on operational efficiency and cost management, along with its robust distribution channels, sets it up for continued success. Pilgrim’s Pride benefits from its diverse product offerings and a solid foothold in the foodservice and retail sectors. The company has also been investing in automation and technology, driving improvements in processing efficiency and product quality.

This Zacks Rank #2 company’s ability to adapt to changing consumer tastes, such as the increasing demand for healthier and more sustainable options, is another key factor that enhances its investment appeal. The Zacks Consensus Estimate for PPC’s current and next fiscal year EPS has risen from $4.91 to $5.12 and from $4.49 to $4.74, respectively, over the past 30 days. Pilgrim's Pride has a trailing four-quarter earnings surprise of 30.9%, on average. Shares of the company have surged a whopping 80.2% year to date.

Here's Why Freshpet Looks Tempting

Freshpet, a leading brand in the fresh pet food segment, could be another strong investment bet for 2025. With the increasing humanization of pets and growing demand for high-quality, fresh and natural pet food, Freshpet has positioned itself at the forefront of this rapidly expanding market. The company has seen impressive growth in sales and brand recognition, thanks to its innovative product offerings and commitment to delivering fresh, nutritious options for pets.

Freshpet’s extensive distribution network, which includes traditional retail and e-commerce channels, enables it to reach a broad consumer base and expand its footprint. The Zacks Consensus Estimate for FRPT’s current and next fiscal year EPS has risen from 87 cents to 90 cents and from $1.47 to $1.50, respectively, over the past 30 days. These estimates suggest respective year-over-year growth of 228.6% and 66.8%. Freshpet has a trailing four-quarter earnings surprise of 144.5%, on average. This Zacks Rank #2 stock has surged 67.9% in the year so far. 

With strong growth prospects, a focus on innovation and the ability to adapt to changing consumer preferences, Tyson Foods, Pilgrim’s Pride and Freshpet are all solid picks for investors looking to capitalize on the trends shaping the food industry in 2025.