Three major market shifts reshaping industries in 2025

Major market forces are redefining competitive landscapes in 2025. Nowhere is this more apparent than in sectors like food and beverages, real estate, and manufacturing. The structural shifts happening in each of these industries could have profound implications for businesses — far more so than predictable cyclical swings or short-lived political policy changes.  

Mid-market executives can benefit from these shifts if they’re informed, aware of the opportunities, and ready for action. While executives in multinational companies navigate slow governance decisions and bloated legacy infrastructures, mid-level business leaders can exploit emerging gaps in the marketplace and test new strategies. But first, they have to understand the forces at play.  

Food and beverage — the alternative protein reality check 

Remember when alternative proteins were touted as the future of global food? Investors threw billions of dollars in venture capital at startups, and supermarkets couldn't fill their shelves quickly enough with exotic solutions like lab-grown steaks and plant-based burgers.  

In 2025, the agriculture, food, and beverage sector is consolidating, contracting, and recalibrating. In fact, it looks as if venture capital investment is down by around 28% year on year in the first quarter of 2025, according to Green Queen’s 2025 report. Many major ventures have closed, merged with others, or been subject to acquisitions within the last year and, frequently, at valuations that fall well below their peaks. 

Several interlinked elements are to blame: 

• Consumers are not so sure about the alternative meat revolution: Enthusiasm about the food's taste and texture has declined. This has led to a fall of up to 7.5% in branded plant-based meat sales in the year to April 2025.  

• Sales of private-label alternatives appear to have grown: While consumers still want sustainable protein, they're opting for affordable and familiar formats rather than premium products. 

• Production costs are too high: Manufacturing for these products requires special facilities and high energy inputs. Compounding that with uncertainty and a shift toward hybrid products, where foods contain small amounts of animal protein alongside plant-based ingredients, means retailers are filling their shelves accordingly while private-label preferences gain traction. 

Recalibration like this offers an opportunity for mid-market businesses, as specialist industry giants start to scale back production. Smaller brands with high-value, hybrid products linked to local preferences can form strategic partnerships with big retailers to secure shelf presence tomorrow.  

For additional insights, check out HLB's Agriculture, Food and Beverage Sector Outlook, which shines a light on market dynamics, shifting consumer trends, and supply chain risks. 

Real estate — the office isn’t dead, just different 

The commercial real estate sector has seen massive amounts of change since the pandemic, as the ups and downs of hybrid work caused a major structural upheaval. Today, hybrid seems to be the default operating model for many knowledge-based industries, and the implications stretch beyond empty desk syndrome.  

In fact, many companies are fundamentally rethinking how much space they need, where the actual work takes place, and if their office strategies affect talent attraction. Landlords are considering flexi space conversions, and many developers are opting for mixed-use urban redevelopment projects instead. 

While flexible offices appear to be on the rise, geography itself is coming into play. According to the Guardian, 54% of businesses now have offices or coworking spaces outside city centres and in commuter towns. Meanwhile, regional talent markets across the country may see an uptick in desk bookings. 

Amidst this upheaval, C-suite leaders at mid-market businesses could develop hybrid models to gain access to a larger talent pool, create smaller office footprints to cut down on overhead without sacrificing culture, and/or partner with developers through mixed-use projects, uncovering investment opportunities at the same time. 

For more information, peruse HLB's latest Real Estate & Construcion Sector Outlook. 

Manufacturing — the electric vehicle expansion slowdown 

In the vehicle manufacturing industry, fully electric vehicles (EVs) are no longer the flavour of the month. Faced with technological and economic realities, original equipment manufacturers (OEMs) are now tempering their enthusiasm. Ford recently announced a significant delay for its next-gen, electric, full-size pickup and electric E-Transit van, which may now not appear until 2028. Ford is also slowing down its capacity expansion at key plants, as it focuses on more affordable and smaller EVs instead. 

Ford isn't alone. Many manufacturers are also dealing with problems like: 

• Supply chain volatility, where the supply and price of critical minerals like lithium and cobalt remain unpredictable. 

• Automation economics, where investment in specialised assembly lines or cutting-edge robotics now seem too bold, based on near-term demand. 

• Consumer hesitancy, where sluggish adoption reflects high price sensitivity. 

In the mid-market, manufacturers are at a strategic crossroads. Level II suppliers, automation specialists, and component companies can pivot to adjacent opportunities, focus on lower-cost EV designs and hybrid platforms, retool rapidly, or forge preferred vendor partnerships with struggling OEMs. 

Read more about the industry at large in HLB’s newest Manufacturing Sector Outlook, where we talk about capital allocation, automation investments, and supply chain dependencies against this developing backdrop.  

How to spot market shifts before your competitors 

For mid-market execs, identifying structural shifts as soon as possible and looking beyond the short-term noise is critical to your business's success. Here are four indicators that may offer some clarity: 

1. Look for persistent changes in customer behaviour.

2. Identify funding and investment patterns, such as mergers and acquisitions consolidation waves or venture capital slowdowns.

3. Evaluate supply chain cost pressures, which can frequently indicate major structural realignment rather than a cyclical shortage.

4. Watch for competitive repositioning, as delayed launches or hesitancy can open profitable gaps for agile firms to fill. 
   
   

Navigate market shifts with HLB 

Disruption may be largely unavoidable, but having the right response can help you adapt and thrive in a rapidly evolving business landscape. 

If you're looking for valuable market insights and predictive analytics to inform your next steps, HLB has expertise in many industries, including food and beverage, real estate, and manufacturing. We offer data-driven strategies tailored to mid-market businesses to help leaders capitalise on structural shifts and mitigate risks at the same time.  

Get in touch today to learn more about our strategic advisory services.