Tyson Foods expects inflation pressure to continue through 2027
Tyson Foods is relying on pricing, efficiency measures and consumer data to support Prepared Foods growth
USA – Tyson Foods chief executive Donnie King said the company expects inflation to remain a long-term issue through 2027, as food manufacturers continue to face higher operating costs and pressure on consumer spending.
Speaking at the BMO Capital Markets Global Farm to Market Conference, King said Tyson Foods has already factored continued inflation into its financial planning for both 2026 and 2027, as current market conditions show little indication that costs will ease significantly.
At the same time, King said the company is focusing on areas it can directly manage, including production efficiency, pricing strategies, and promotional activities, with the aim of keeping its products accessible to retailers and consumers despite rising costs.
He added that fuel costs have risen by more than US$1 in recent months, which could influence how consumers shop and where they buy groceries as household budgets come under greater strain.
King also described the packaged food sector as a difficult operating environment because inflation and broader economic pressures continue to affect consumer purchasing behaviour across the industry.
Even so, Tyson Foods reported that its Prepared Foods division recently achieved its second consecutive quarter of sales volume growth, supported by brands such as Hillshire Farm and Jimmy Dean.
Prepared Foods focus
According to King, the company has been reviewing operations across its supply chain to reduce inefficiencies and cut waste across the Prepared Foods business.
In addition, Tyson Foods has increased efforts to gather first-party consumer data so it can better understand customer preferences and purchasing habits without relying entirely on third-party information.
King said the company previously attracted a larger share of older consumers while seeing lower engagement among younger shoppers, whose expectations around product features and quality differ from those of earlier generations.
As a result, Tyson Foods has introduced several products aimed at younger consumers, including frozen high-protein breakfast bowls, Jimmy Dean sandwiches, and Jimmy Dean waffles.
King said the development of those products was guided by consumer data and market analysis, adding that the items have performed well since entering retail distribution channels.
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