A new survey of 77 food and drink CEOs representing 49 large companies and 28 small and medium鈥�sized enterprises (SMEs) across 13 EU Member States reveals Europe鈥檚 largest manufacturing industry is losing confidence in Europe鈥�s business environment.
贵辞辞诲顿谤颈苍办贰耻谤辞辫别鈥檚 State of the Industry 2026 survey signals a broad weakening of optimism across the food and drink industry with only 13% of companies reporting improved business conditions over the past year. Over half (61%) of SMEs report low confidence that their business will grow in the next 12 months.
Worryingly, Europe has slipped to third place as an investment destination in the latest CEO ranking, with Asia overtaking it this year. In last year鈥檚 survey, Europe still held second position, just behind North America. Today, only 31% of respondents consider Europe an attractive place to invest in innovation relative to other global markets.
This shift is driven by a combination of mounting threats, including input cost inflation (52%), reduced consumer purchasing power (49%), and geopolitical conflicts destabilising markets (43%). Such pressures continue to erode operating stability for manufacturers across the food and drink sector.
Further worrying trends show that unfair trading practices are a growing concern, with 62% of respondents reporting the latter have increased over the past five years. And while 82% of companies are reformulating products to support healthier diets, they say their progress is constrained by consumer preferences, education gaps and cost.
These challenges reinforce the need for urgent policy action, as confidence in EU decision鈥憁aking declines. 60% of business leaders are not confident that the EU can deliver a regulatory environment that supports competitiveness and sustainability. One SME respondent commented that there are 鈥�too many regulations, too much administrative burden, too many quality documents to fill out for customers鈥︹赌�, underscoring growing frustration with regulatory complexity.
Policymakers have a crucial role to play in supporting Europe鈥檚 largest manufacturing sector by helping food and drink manufacturers to be more sustainable, to feed people with quality and affordable products, and to improve Europe鈥檚 global competitiveness.
As reiterated by 贵辞辞诲顿谤颈苍办贰耻谤辞辫别鈥檚 Director General, Dirk Jacobs: 鈥淥ur latest CEO survey points to weakening confidence in Europe鈥檚 business environment, with growing indications that investment and innovation are being redirected elsewhere. For over a year, we have consistently called for a comprehensive Action Plan for the Food and Drink Industry; the need for it is now undeniable. Such a plan for Europe鈥檚 largest manufacturing sectormust unlock investment and innovation, boost trade while safeguarding a well-functioning Single Market, ensure fairness along the value chain, and support companies and the wider value chain in delivering on decarbonisation. A targeted Food Omnibus II to reduce unnecessary regulatory burden should be part of this effort. With a coherent framework in place, the sector can reinforce Europe鈥檚 growth, food security and resilience.鈥�
Note to the editor:
More data points may be provided upon request. Please consult the key insights deck for a deeper analysis.
