American confidence in the safety of food sold at grocery stores has fallen to 65 percent, the lowest level recorded. The decline follows the largest Cyclospora outbreak in U.S. history, which sickened more than 12,000 people across 21 states. At the same time, rising input costs are adding pressure on household budgets and company margins alike.
Confidence in Oversight Reaches New Lows
Trust in the federal government’s ability to ensure food safety has also dropped sharply, reaching just 47 percent. Both figures mark record lows and represent steep declines from 2019 levels, when grocery confidence stood at 81 percent and government confidence at 68 percent. For the first time, a majority of Americans now lack confidence in federal food safety oversight. The behavioral impact appears even more entrenched. Recent surveys show 73 percent of consumers have avoided certain brands or foods after a recall or advisory in the past year, a 20-point increase from 2024. Recalled units jumped dramatically from 211.2 million in the first half of 2025 to 941.2 million in the first half of 2026, even as the total number of recalls remained roughly flat.
Inflation Pressures Intensify for Producers
McCormick has raised its full-year 2026 inflation forecast to as much as 7 percent, citing higher freight and logistics costs linked to the Iran war and new federal regulatory changes. The company’s chief financial officer noted that bulk lead times have stretched from 24 to 72 hours to as long as 7 to 10 days. Conagra has projected similar full-year inflation approaching 6 percent. Broader price signals reinforce the trend. The FAO Food Price Index climbed to 136 in September, its highest point since November 2022. The ISM prices-paid index for manufacturing hit 77.9 percent, marking the 24th straight month of raw-materials price growth. Among agricultural producers, 52 percent now cite higher input costs as their top concern, a survey record.
Industry Consolidation Continues
McCormick’s $44.8 billion acquisition of Unilever’s food business cleared U.S. Federal Trade Commission review on October 5. The deal still requires clearance from the UK Competition and Markets Authority by November 11. Unilever has proposed spinning off the Colman’s mustard brand to address competition concerns. Separately, Sargento acquired La Terra Fina, a producer of dairy-based dips, spreads, and quiches. The purchase led to the creation of a new Deli Business Unit that combines the acquired operations with Sargento’s existing consumer and foodservice lines. September also saw 65 new food and beverage manufacturing projects announced, the second-highest monthly total of the year.
- Consumer confidence in grocery food safety: 65% (record low)
- Largest U.S. Cyclospora outbreak: more than 12,000 cases across 21 states
- McCormick FY2026 inflation forecast: up to 7%
- Brand avoidance after recalls: 73% of shoppers
These shifts in consumer behavior and cost structures are reshaping how manufacturers and retailers approach both safety protocols and pricing strategies in the months ahead.
AI Disclaimer: This article was created with the assistance of AI tools and reviewed by a human editor.