Willis: Food industry faces mounting risks and falling confidence in risk management in 2026
According to a new Willis report, food and beverage companies are increasingly concerned about safety standards, supply chain volatility, and diminishing management control.
According to the Global Food, Beverage and Agriculture Risk Report 2026, published today by Willis, a WTW business, the food industry is facing a sharp increase in operational and safety-related threats. Fears regarding food safety and health have emerged as a primary concern, with 45% of companies identifying this as a top risk, compared to just 29% in 2024. This trend is driven by heightened scrutiny of ultra-processed foods and a growing exposure to litigation within the global market.
The broader risk landscape is becoming increasingly complex due to geopolitical instability, fluctuating tariffs, rising input costs, persistent cyber threats, and the physical impacts of climate change. These compounding factors have significantly eroded the confidence of industry leaders in their risk management capabilities. Current data shows that only 62% of respondents feel they have full or partial control over their exposures, a significant decline from 75% in 2024 and 89% in 2023. Many leaders express a lack of adequate tools and board-level support to navigate these volatile conditions.
Despite these significant headwinds, the sector remains remarkably resilient. In response to the cost-of-living crisis and inflation, 52% of firms are prioritizing value-for-money product offerings to maintain consumer demand and near-term profitability. Furthermore, corporate preparedness is improving, with 83% of businesses now reporting formal business continuity plans, up from 78% in previous assessments, as companies strive to mitigate the impact of supply chain disruptions.
ESG (Environmental, Social, and Governance) risks also remain a top priority, with 84% of organizations intending to focus on these areas over the next two years. Producers are increasingly feeling the physical effects of climate change, including severe droughts, flooding, and water stress, which threaten agricultural production and land viability. Addressing these environmental risks is no longer a peripheral strategy but a central requirement for operational sustainability and long-term viability in the food and beverage industry.
Simon Lusher, Global Food, Beverage and Agriculture Leader at Willis, highlighted that companies are navigating an environment that is becoming less predictable every year. Experts from Willis emphasize that traditional risk mitigation approaches are no longer sufficient. As exposures intensify, businesses must adopt more sophisticated risk transfer strategies and increase investments in resilience and continuity planning to maintain stability. Succeeding in the current landscape will require agility in meeting consumer expectations for safety and transparency while managing internal structural pressures.