There’s another transformation unfolding in food and drink, this time behind the scenes. While consumers see new products, faster delivery and greener labels, the real shift is happening inside the factory.
Advances in food manufacturing tech are quietly rewriting how products are made, from smart factories powered by automation to AI tools cutting waste and re-shaping supply chains.
In our recent Food and Drink Digital Transformation blog, we explored how commerce and consumer experiences are being reinvented. Here, we turn to the factory floor – the less visible but equally vital side of the story – to look at the technologies, investments and strategies redefining how food is produced, packaged and delivered in 2025 and beyond.
1. Automation and the Smart Factory
Automation is no longer an optional upgrade but a structural shift. Robots, IoT sensors and AI-powered systems are being woven into production lines to reduce downtime, improve yield and bring real-time visibility to operations. The latest wave of food manufacturing tech is enabling factories to adapt quickly to changing orders, predict maintenance before breakdowns occur, and model scenarios digitally before making costly physical adjustments.
Investment across the UK reflects this momentum. Marks & Spencer announced in August a £340 million fully automated distribution centre in Daventry, scheduled to open in 2029, equipped with robotics, automated cranes and advanced supply chain systems. Meanwhile, Pladis, the owner of McVitie’s, is investing £68 million in modernising UK factories, installing new chocolate moulding lines and ovens designed to cut 876 tonnes of carbon emissions annually. These projects illustrate how automation is now directly tied to both efficiency and sustainability.
2. Innovation Shaped by Consumers
Consumer demand has become the strongest driver of change. Shifting tastes toward plant-based diets, reduced sugar and protein-enriched products mean manufacturers must reformulate and launch faster than ever. Food manufacturing tech is central to this agility, helping companies analyse social trends, optimise recipes, and run smaller, more flexible production batches.
A good example comes from Nestlé’s AI trial with Zest, which reduced surplus edible waste by almost 87 per cent in two weeks at a UK site. Beyond the sustainability benefits, this freed capacity and resources for innovation, showing how AI can shorten product development cycles. With social platforms dictating the pace of food trends, such responsiveness is now a competitive necessity.
3. Sustainability and Compliance
In most sectors, it’s fair to say that sustainability has become inseparable from brand value. Stricter UK and EU regulations are demanding traceability, carbon reduction and more transparent labelling, while retailers and consumers are rewarding those who can demonstrate genuine progress. Food manufacturing tech is helping meet these requirements through advanced monitoring systems, energy tracking, and smart packaging innovations that extend shelf life and reduce waste.
The investments by Pladis highlight how sustainability is increasingly embedded in tech-led upgrades rather than bolted on afterwards. By integrating modern ovens and systems that reduce energy use, the company is aligning compliance obligations with cost savings (and reputational gains).
4. Supply Chain Resilience
Food manufacturing tech also extends into the supply chain, where resilience has become a strategic priority. The disruptions of recent years (geopolitical shocks, inflation and climate volatility) have forced manufacturers to rethink how they manage procurement and logistics.
According to Rockwell Automation’s 2025 report, over half of UK manufacturers are now using AI or machine learning in production, often applying it to demand forecasting and risk modelling. Tools like predictive analytics and digital twins are making it possible to anticipate shortages, model alternative sourcing scenarios and optimise stock levels in real time. Even Nestlé’s AI waste project shows how smarter factory systems can strengthen the wider supply chain, reducing unnecessary transport and downstream inefficiencies.
5. What to Watch Next (2026–2028)
The next wave of food manufacturing tech isn’t science fiction – it’s already in motion, with pilots moving steadily towards commercial adoption. Over the next three years, four areas in particular are set to gather pace:
- Smart packaging
Innovations in packaging are going far beyond protection and branding. Researchers have trialled battery-free packaging with gas sensors and NFC circuitry that can detect spoilage and release antimicrobial agents to extend freshness. At the same time, colour-changing freshness indicators are being tested for meat and seafood, giving consumers clear signals on quality while helping manufacturers cut food waste. Unsurprisingly, the global smart food packaging market is projected to grow strongly over the next decade as safety, sustainability and traceability become non-negotiable.
- Generative AI in product development
Advances in AI are beginning to move from analytics into creation. Generative AI systems are being designed to suggest recipes, optimise ingredient substitutions and support reformulation in response to shifting consumer demand. This technology promises to shorten innovation cycles, reduce reliance on volatile commodities and make product portfolios more responsive to trends.
- Edge computing on the factory floor
Instead of sending all production data to the cloud, manufacturers are turning to edge computing to process information locally, right where it is generated. This enables faster responses, supports predictive maintenance and opens the door to more autonomous production lines, where machines can self-adjust in real time.
- Blockchain for traceability and compliance
The ability to prove provenance and monitor compliance across increasingly complex supply chains is becoming a commercial imperative. Blockchain and other distributed ledger technologies are moving beyond pilots into practical deployment, giving manufacturers and retailers the assurance of transparency from farm to fork.
These innovations are not speculative either – they build directly on the investments and infrastructure already being made today, and by 2028 many will no longer be experiments but standard expectations across the sector.
Final Thoughts
Food manufacturing tech is now the engine of resilience and growth, not just a toolkit for efficiency. The sector’s leading players – from M&S to Pladis and Nestlé – are proving that automation, AI and sustainability investments bring both operational benefits and competitive advantage.
The challenge for manufacturers is to treat these advances as part of a wider transformation, rather than isolated upgrades. Those who can integrate smart factories, respond rapidly to consumer trends, embed sustainability into production and strengthen supply chains will not only weather uncertainty but also set the pace for the industry.
Food manufacturing has always been about scale and safety. In 2025 and beyond, it will increasingly be about agility, transparency and trust, and the companies who harness technology most effectively will be the ones to lead.
Simply Commerce is a specialist in technology recruitment and consulting across commerce, digital and data. If you’re scaling your tech team and need deeper insight or access to talent, we can help.
