What’s up? Food industry news! Market overview and analysis [May 2025]

The end of May 2025 brings a number of dynamic developments in key sectors – from the WPC80 price increase driven by global demand, to the stable but promising creatine market, to the crisis situation in the egg market in Poland. In the background, we see a record cereal harvest in India, uncertainty over US tariffs and strong growth in the flaxseed segment in Europe. If you want to know what is driving these changes and how they may affect your business decisions, this newsletter will provide you with the latest and most important information!

WPC 80

Prices for 80% whey protein concentrate (WPC80) in Europe showed a slight increase at the end of May, driven by stronger demand from Asian markets. Importers from these regions are increasing their purchases of European WPC80 due to the limited availability of raw materials from the US, where recent tariffs have disrupted exports.

As a result, Europe has gained a competitive advantage in the export market, which is translating into growing interest and a gradual increase in prices. At the same time, European buyers remain cautious, keeping a close eye on the risk of cheaper supplies from the US, which could lead to a price correction.

Despite this uncertainty, the WPC80 market remains tight. The balance between limited supply and active exports will determine whether the observed upward price trend will continue in June.

Creatine

The market for creatine at the end of May 2025 remains stable, with a clear upward trend driven by growing interest in supplementation among athletes and physically active people. The global creatine market is estimated to be worth around US$502 million in 2024, and is forecast to grow at a compound annual growth rate (CAGR) of 5.7 per cent, meaning that it could reach around US$700 million by 2030. In 2025, we see an increase in interest in innovative forms such as micronised or buffered creatine, as well as multi-ingredient formulations combining creatine with BCAAs, beta-alanine or vitamins. The fastest growing region is Asia-Pacific, mainly due to rising incomes, urbanisation and a strong e-commerce channel. However, it is worth noting that this market is vulnerable to geopolitical changes and possible supply disruptions from China, which accounts for more than 80% of global production.

Eggs

At the end of May 2025, the egg market in Poland remains extremely tight – following the outbreak of avian flu and the culling of more than 5 million laying hens (about 12% of the domestic flock), egg prices have risen above EUR 2.45/kg (for caged eggs), exceeding levels seen in many Western European countries. Despite the end of the holiday season, industrial demand remains high as processors buy in advance for fear of further shortages and consumers continue to see eggs as a cheaper alternative to meat. In addition, companies are holding back on signing contracts for the second half of the year due to epidemiological and price uncertainty. The continuing supply gap in Eastern Europe, combined with dwindling stocks of powdered eggs, suggests that prices may not stabilise until July-August, meaning that high egg prices will remain with us for at least the next few weeks.

Linseed

As of the end of May 2025, the flax seed market in Europe is showing significant growth, with its value increasing from US$861 million in 2024 to a projected US$993 million in 2025 and potentially reaching over US$3 billion by 2033 (CAGR 15.27%). Demand is being driven by interest in functional foods, plant-based diets and non-GMO products, and flaxseed has a wide range of applications: from bread and breakfast cereals to supplements, cosmetics and as an egg substitute in the vegan industry. More and more companies are investing in technologies that improve the nutritional value of flaxseed, such as cold milling and micronisation, making it more competitive as a raw material in the food and feed industry.

What’s new?

According to the latest USDA report, only 68% of the US corn crop was rated as good or very good, the lowest starting score since 2019 and below analysts’ forecasts of 73%. Spring wheat fared even worse, with only 45% of the crop receiving a positive rating, the second worst result in the past 40 years. This is attributed to adverse weather conditions such as excessive rainfall, cold and lack of sunshine, which delayed crop growth, particularly in states such as North Dakota and Ohio. Despite this, the majority of the corn crop has yet to germinate and forecasts are predicting warmer and sunnier weather, which could improve the situation. However, if conditions do not improve, low grades could affect market volatility and potentially lower yields.

The US trade court has blocked Donald Trump’s plans for universal tariffs on imports from countries with a trade surplus with the US, deeming them to exceed presidential powers. Despite this, the Trump administration has announced an appeal. A 10% tariff on most countries has already been in place since April, with further tariffs due to take effect on 8 July. The US has also hit China (total 145% tariffs, then temporarily reduced to 30%), Mexico and Canada (25% on most goods), and the EU is waiting for 50% tariffs from 1 June. Trump has also threatened a 25% tariff on iPhones, and has slapped a 100% tariff on foreign films. Although the UK has signed a limited trade agreement with the US, the 10% tariffs on UK exports are still in place. In response, Canada, China and the EU have announced billion-dollar counter-tariffs. The market now awaits key negotiations, which are expected to conclude by 9 July at the latest.

India is forecasting record wheat and rice harvests for the season ending June 2025. According to the agriculture ministry, wheat production is expected to reach 117.5 million tonnes, surpassing previous estimates and the 2024 result (113.3 million tonnes). The increase is attributed to higher farmgate prices, which have prompted farmers to increase acreage under cultivation and use more productive seed varieties. Rice production is expected to reach a record 149 million tonnes, up from 137.8 million tonnes the previous year. Total cereal production in the country is expected to rise to 354 million tonnes from 332.3 million tonnes in 2024. The abundant wheat harvest will allow the country to meet domestic demand without the need for imports, which could lower global prices for the grain. As the world’s largest exporter of rice, India plans to increase exports of the grain, which could further impact global markets.

Agricultural leaders in the UK are expressing deep concern over planned budget cuts to the Environmental Land Management Scheme (ELMS), which replaced EU agricultural subsidies after Brexit. It is reported that the budget for environmentally friendly farming practices is to be significantly reduced and access to funds restricted mainly to small farms. This means that larger farms will lose financial support for environmentally friendly measures, which could lead to intensification of production at the expense of the environment. Environmental organisations warn that such moves could hamper biodiversity and nature conservation goals. In addition, planned changes to building regulations could weaken environmental protection for new developments. Farmers fear that a lack of adequate financial support will force them to abandon sustainable farming practices, which could have a negative impact on the future of the UK’s farming sector and environment.