Resilinc Special Report

Food and Beverage Supply Chain Governance: Navigating ESG Laws, Tariffs, and HFSS Regulations

Supply chain due diligence laws, shifting trade policies, and evolving regulations are transforming the food and beverage (F&B) industry. The EU’s Corporate Sustainability Due Diligence Directive (CSDDD) and Germany’s LkSG impose strict supply chain compliance requirements, demanding greater oversight of human rights and environmental risks. Meanwhile, tariffs on agricultural goods—particularly beef and pork—are reshaping global sourcing and cost structures.
Regulations targeting high-fat, salt, and sugar (HFSS) products are also disrupting product placement, marketing, and ingredient sourcing across Europe. These pressures require robust supply chain governance to manage risks, ensure regulatory adherence, and adapt sourcing strategies. This report examines the impact of evolving trade laws, tariffs, and regulatory shifts on food supply chains, offering strategies to mitigate disruptions, strengthen resilience, and uphold compliance in a rapidly changing market.
Key Insights:
  • Over 50% of companies impacted by the EU's CSDDD and Germany’s LkSG face rising supply chain compliance costs, with many struggling to meet new requirements ahead of 2025 enforcement
  • The U.S. 10% tariff on Chinese imports is driving food and beverage companies to shift sourcing for ingredients, packaging, and equipment to Mexico and Southeast Asia to control costs
  • China’s 10-15% retaliatory tariffs on U.S. agricultural products are disrupting beef, pork, and processed food exports, driving increased demand for Latin American and European suppliers