Healthy Nation, Healthy Future: Key Food Policy Developments

Current Food Policy Developments

In recent years, food policy has become a pivotal area of focus for both government and industry leaders. As the health of the nation, particularly children, remains a top priority, various policies have been introduced to address the shift towards ultra-processed foods (UPFs) and the rise in chronic diseases. Understanding these changes is crucial for industry stakeholders to navigate the complexities and seize opportunities for growth and innovation.

With that in mind, here are 3 key food policy developments shaping the market:

1. SNAP/WIC Changes

Recent adjustments to the Supplemental Nutrition Assistance Program (SNAP) and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) are reshaping how millions of Americans access food—and how the food industry responds. In fact, 90% of SNAP benefit users are concerned about possible benefit reduction in 2025. As pandemic-era SNAP benefit expansions have rolled back, many households are shifting their purchasing behavior, with a noticeable move toward more affordable, at-home meal solutions. This shift presents both a challenge and an opportunity for CPG brands to innovate within tighter budgets while still delivering on health, taste, and convenience.

Meanwhile, ongoing discussions around the Farm Bill, state legislations, and the federal spending bill are spotlighting the role of SNAP in promoting healthier eating habits. Past increases in benefits led to higher purchases of fresh produce and dairy alternatives, signaling that policy levers can directly influence consumer choices. For CPG companies, aligning product portfolios with these evolving policy frameworks—especially by offering nutrient-dense, budget-friendly options—can drive both social impact and market growth.

2. Regulatory Frameworks

As the US grapples with rising rates of diet-related diseases—particularly among children—there is growing momentum to modernize the regulatory frameworks that govern our food system. This underscores the urgent need for a more proactive, health-forward approach to food regulation, especially in light of the widespread consumption of ultra-processed foods (UPFs). Current frameworks often lag behind the science, failing to account for the cumulative health impacts of additives, synthetic ingredients, and marketing practices that disproportionately affect children. To protect the most vulnerable consumers, policymakers and public health advocates are calling for a more rigorous, transparent, and health-aligned regulatory system that prioritizes long-term well-being over short-term market dynamics.

For CPG brands, this evolving landscape presents both a challenge and a strategic opportunity. As regulatory scrutiny intensifies, companies that anticipate and align with emerging standards—such as limits on added sugars, sodium, and synthetic dyes—will be better positioned to lead. By investing in reformulation, responsible marketing, and transparent labeling, brands can not only stay ahead of compliance but also build trust with increasingly health-conscious consumers. And with 64% of consumers demanding greater transparency from food manufacturers and retailers, there’s a lot to gain.

3. State Legislation

Across the US, state governments are stepping in to fill policy gaps and drive healthier food environments—especially for children. In fact, several states have introduced legislation to restrict the sale of sugar-sweetened beverages in schools, limit the marketing of unhealthy foods to children, and require clearer front-of-pack labeling. These efforts reflect a growing recognition that local policy can be a powerful lever for improving public health outcomes, particularly in communities disproportionately affected by diet-related diseases.

For CPG brands, this patchwork of state-level regulations presents both complexity and opportunity. Companies must navigate varying compliance requirements while also responding to a clear consumer signal: health matters. Brands that proactively reformulate products, reduce added sugars, and invest in transparent labeling will not only stay ahead of regulatory risk—they’ll also build stronger relationships with health-conscious consumers and public sector partners. As more states adopt progressive food policies, the brands that lead with purpose and agility will be best positioned to thrive.

Future Trends and Opportunities

As the food industry evolves to meet the demands of a more health-conscious and environmentally aware consumer base, three major trends are shaping the future: personalization, sustainability, and wellness. These forces are not only redefining product innovation but also reshaping how CPG brands engage with their audiences.

Personalized nutrition is gaining momentum as consumers seek food solutions tailored to their unique health goals, dietary restrictions, and even genetic profiles. Advances in digital health tools and AI-powered platforms are enabling more precise recommendations, creating opportunities for brands to offer customizable products and experiences. This shift toward individualized wellness is pushing CPG companies to think beyond one-size-fits-all formulations and embrace data-driven product development.

At the same time, sustainability has become a non-negotiable expectation. Consumers increasingly view environmental responsibility as integral to personal health, demanding transparency in sourcing, packaging, and production practices. Brands that invest in regenerative agriculture, reduce plastic use, and commit to carbon reduction are not only meeting regulatory expectations—they’re building long-term trust. Finally, the broader health and wellness movement continues to accelerate. Consumers are prioritizing functional foods that support immunity, digestion, and mental clarity, with growing interest in plant-based, high-fiber, and nutrient-dense options. For CPG brands, the opportunity lies in delivering products that are not only good for people—but also good for the planet.