by Elijah Moore, on May 19, 2025 7:00:00 AM
In a time of inflation, labor shortages, and global uncertainty, the U.S. food & beverage manufacturing sector is proving its strength. Far from merely weathering disruption, it’s evolving and expanding to meet the fast-changing demands of today’s market.
According to FDI Intelligence, the last six months have seen 101 publicly announced food & beverage manufacturing or distribution projects in the United States, accounting for 5,992 new jobs and over $1.76 billion in capital investment so far. These figures highlight the sector’s ability to attract significant investment and drive job creation despite challenging conditions.
A range of sub-sectors, including alternative proteins, dairy, cold chain logistics, and baked goods, are driving growth. The industry’s expansion reflects broader trends in reshoring, supply chain efficiency, and evolving consumer preferences for fresher, healthier, and more convenient food options.
What’s driving site selection in the sector?
Every project has its own unique priorities, but several consistent factors are shaping food & beverage site selection decisions in 2025:
- Logistics and Proximity to Consumers: With more brands pushing into fresh, organic, and refrigerated offerings, reducing transit time is critical. We’re seeing strong demand around major metro edges and regional logistics hubs, particularly those with established cold storage infrastructure and highway access.
- Labor Access and Workforce Development: Labor remains a defining challenge for manufacturers. Companies are evaluating both current labor pool data and long-term workforce development pipelines, including partnerships with technical schools.
- Site Readiness and Speed-to-Market: Speed remains a critical factor for food & beverage companies looking to capitalize on market demand and secure supply chain advantages. Projects are increasingly gravitating toward sites that are pre-permitted, have completed due diligence, and offer immediate access to utility infrastructure. These “shovel-ready” sites reduce uncertainty and accelerate timelines, helping companies move from decision to operation as quickly as possible.
- Utility Considerations: Water-intensive food & beverage operations are placing greater emphasis on long-term water availability, cost, and quality. Many facilities also require on-site or upstream wastewater pretreatment systems to meet discharge standards, making wastewater infrastructure and regulatory coordination a key part of site evaluation. Reliable and expandable utility infrastructure, including water, wastewater, natural gas, and electricity, also continues to be a critical factor in determining a site’s viability for these companies.
Geographic site selection trends for food & beverage projects
The following map (shaded by number of projects) shows food & beverage manufacturing and distribution announcements for the last six months. While there is healthy activity in a variety of regions, there are several geographic themes worth noting.
- Midwest (OH, MI, IL, IN): Central to U.S. consumers and agricultural supply chains, offering a strong logistics and labor force proposition.
- Southeast (KY, NC, FL): Attracting investment thanks to business-friendly climates, workforce training programs, and port access, as well as expanding cold storage assets.
- Texas: High activity continues in areas like the Dallas metro and the Gulf Coast, driven by population growth, strong logistics infrastructure, favorable permitting environments, and their strategic position as gateways to the western U.S.
Economic incentives are still a competitive lever
Operational needs often drive site selection, but economic incentives can swing final decisions. The proprietary IncentivesFlow™ platform tracks meaningful incentive packages across the country. Below are recent examples in the food & beverage sector:
Company |
State |
Investment ($M) |
Jobs |
Incentives ($M) |
| DSM | Texas | $176 | 70 | $7.87 |
| Guidry's Catfish LLC | Louisiana | $30 | 100 | $7.00 |
| Fair Oaks Foods | Iowa | $134 | 250 | $6.30 |
| Jackson Purchase Distillery | Kentucky | $10 | 25 | $5.80 |
| Casanova Meats | New York | $20.50 | 31 | $5.00 |
Trending incentive types in 2025
- Property Tax Relief: Still the most common mechanism, particularly for capital-heavy projects.
- Infrastructure Assistance: Grants or in-kind support for site prep and utility extensions are highly sought after.
- Workforce & Job Grants: Offered selectively, these remain popular in rural or “Tier 2” markets and will always be dependent on the project’s job creation.
Five food & beverage projects to watch
The following standout projects illustrate where the industry is headed in 2025:
- Paris Baguette (Burleson, Texas): The bakery is investing $165 million to build a 267,000-square-foot baking facility near Dallas, which is expected to create 450 jobs once fully operational. The plant will support Paris Baguette’s ambitious North American expansion and reduce reliance on overseas supply chains.
- Clasen Quality Chocolate (Virginia): Clasen plans to establish a new production facility in Frederick County, Virginia, to manufacture confectionery coatings, fillings, and chocolate for the food industry. Investment: $230 million, Jobs: 250.
- Star of the West Milling Company (Indiana): West Milling Co. plans to expand grain milling operations at its existing location in Ligonier, Indiana. The company will create 14 new jobs.
- Clark Beverage Group (Bowling Green, Kentucky): Clark plans to build a large-scale plant-based protein facility in Bowling Green that will benefit from the port access in Savannah, Georgia. Investment: $129 million, Jobs: 20.
Outlook: What’s Ahead in the Next Six Months
Despite macroeconomic headwinds and a rapidly evolving political climate, activity in the food & beverage sector is expected to remain strong. However, available land, infrastructure capacity, and skilled labor are becoming increasingly scarce in top-tier markets, making it more difficult for companies seeking to expand operations to find the right site.
For food & beverage companies considering expansion in 2025, the most successful projects will be those that:
- Prioritize data-driven site evaluation and due diligence
- Seek collaboration with communities on workforce development
- Move swiftly to secure ready-to-develop sites with clear timelines
At Site Selection Group, we help companies navigate these complexities to make confident, cost-effective, and future-proof location decisions.
