In a new survey of 118 food and drink CEOs, from 62 large companies and 56 small- and medium-sized enterprises (SMEs) across 18 EU Member States, business leaders told us that they are losing confidence in Europe’s business climate—stifling growth and sustainability ambitions.
Confidence in Europe’s business climate is dropping among food and drink leaders, with only 24% seeing improvements in conditions over the past year—a 38% drop from last year’s survey. In FoodDrinkEurope’s State of the Industry 2025 survey, Europe’s food and drink makers highlight growing concerns over regulatory burden, accessing finance, and looming geopolitical volatility
A majority (64%) of food and drink leaders said they lack confidence in the EU’s ability to foster a regulatory environment that supports both sustainability and competitiveness, citing increasing regulatory complexity and pressure. One SME commented: “[EU] regulations are increasingly putting more pressure on companies. We need to be able to compete with countries like the US.”
Since last year’s survey for example, Europe has lost its 1st place position as an attractive investment destination, with North America taking the top spot (17% NA vs. 14% EU #1). Compared to last year’s survey, this year 40% fewer CEOs say Europe is still an attractive place to invest relative to other markets (58% attractive in 2024 vs. 35% attractive in 2025). Despite this shift, industry leaders remain committed to Europe’s future and urge policymakers to restore investment confidence through targeted support and regulatory improvements.
Sustainability remains a top priority, with 71% of food and drink businesses setting emissions reduction targets. However, two-thirds say current EU support is inadequate, particularly for SMEs, 43% of whom “did not know” if the EU was providing adequate support.
To ensure businesses can meet climate goals while staying competitive, CEOs ask the EU to deliver greater investment in public infrastructure (47%), improved access to finance (40%), and stronger innovation support (30%).
Europe’s food and drink sector is ready to work with policymakers to create a regulatory and investment framework that supports competitiveness and sustainability. FoodDrinkEurope urges swift action to secure the future of Europe’s largest manufacturing industry.
Note to the editor:
More data points may be provided upon request. Please consult the key insights deck for a deeper analysis.
BACKGROUND
FoodDrinkEurope’s State of the Industry 2025 survey ran from November 2024-January 2025. 118 CEOs of food and drink companies responded, 62 from large companies and 56 from SMEs. The respondents cover 18 EU Member States.
Where comparisons are made with FoodDrinkEurope’s State of the Industry survey 2024, the sample from that survey was 131 CEOs of food and drink companies, from 79 large companies and 52 SMEs, covering 15 EU Member States. The 2024 survey ran from November 2023-January 2024.
