7 fastest-growing small businesses in food, restaurants, and beverages for 2025

Ground Picture // Shutterstock From eco-friendly practices to functional foods, the U.S. food and beverage industry is feeding customers’ hungry demands for wellness, convenience, and flavor. And for entrepreneurs, these changes are a buffet of opportunities to create new businesses in food, drink, restaurants, snacks and services. NEXT research has found that the fastest-growing restaurants, food, and beverage businesses for 2025 include: 1. “Functional Foods” and Personalized Nutrition Products like gut-healthy kombucha, probiotic snacks, and nutrient-packed smoothie kits have grown in popularity for people who want good food that they feel supports their health. And small business owners are growing the functional food market. A subset of this trend is personalized nutrition (also called precision nutrition), which tailors a diet to an individual’s unique health needs or goals. This could look like customized meal plans, tailored nutrition supplements, or products for specific conditions like diabetes or low energy. If you already own a restaurant, you can embrace the functional food trend by incorporating a health-focused menu. Customized meals–such as build-your-own bowls or salads– let diners tailor their breakfast, lunch, or dinner to their specific dietary need, be it high-protein, low-glycemic, etc. Restaurants can also partner with nutritionists to create dishes targeting common health goals like energy boost, weight management or gut health. According to a recent trendspotting panel hosted by the Specialty Food Association, other opportunities for food businesses include customizable snacks, AI-powered nutrition apps, and new foods and flavors with targeted health benefits. 2. Fancy Non-Alcoholic Cocktails The hashtag #sobercurious has over 89,000 TikTok videos (and 814,000 Instagram posts) of creators discussing or exploring an alcohol-abstinence lifestyle. If growing trends like “Dry January” and “Sober October” and celebrity entrepreneurship aren’t indicators enough, several studies and surveys have indicated that Gen Z has less affinity for alcohol. The demand for non-alcoholic beverages has risen as consumers prioritize wellness and inclusivity. But for those who still want to feel they have something special in their glass, complex mocktails and craft non-alcoholic spirits are gaining traction in bars and homes alike.  With benefits beyond hydration, functional beverages infused with adaptogens, nootropics, or CBD are also booming, appealing to those seeking relaxation, better digestive health, and beauty boosts with what they sip and stir. Restaurants and hotels are adding more non-alcoholic beer and wine options. They’re also crafting aesthetically appealing mocktail menus with fresh ingredients and non-alcoholic spirits to help guests feel included in celebrations. And it’s not just for dine-in guests; according to DoorDash, 29% of consumers reported ordering low- or no-alcohol drinks in 2024. Another type of business in adult alcohol-free drinks is emerging: Zero-proof bottle shops and sober bars are popping up across the country. Thanks to shifting perceptions of overindulging and sobriety, these businesses are catering to a more health-conscious demographic that wants social activities without the hangover. 3. CBD and Cannabis-Infused Food and Drink  Researchers from Carnegie Mellon found that daily marijuana users now outnumber daily drinkers for the first time. A 2022 study found that among 18-24-year-olds, 69% prefer cannabis to alcohol.  Recreational marijuana is now legal in 24 states and legal for medical use in 38 states. As the cannabis industry expands, small businesses are creating innovative food and beverage products like CBD-infused drinks and snacks for people who want relaxation without psychoactive effects. In states where cannabis is fully legal, THC-infused food, such as gourmet chocolate, baked goods, and beverages, are booming. These products cater to customers looking for a flavorful alternative to smoking. And because of rising demand, more restaurants are adding cannabis-infused beverages to their menus through coffee drinks, mixed cocktails, or prepackaged iced teas, sodas, beers and energy drinks. 4. Meals and Snacks for People Taking GLP-1 Medication With one in eight (about 13%) of American adults using GLP-1 medications (like Wegovy, Ozempic, Mounjaro, etc.)– and no indication of decreasing demand–food catering to those seeking help with weight management and diabetes is on the rise. Large corporations are already responding to this shift. Nestle launched a line of high-protein meals called Vital Pursuit to support those taking semaglutide. Competitor Conagra Foods will feature an “On Track” badge on its Healthy Choice frozen meal packaging to indicate high-protein meals that are GLP-1-friendly. Restaurants report that 63% of consumers say they’re spending less at restaurants in part due to their medication. Your restaurant may want to adapt the menu to include high-protein options with adjusted portion sizing to accommodate smaller appetites. Small business owners could also cater to this market with low-glycemic meal kits and fiber-infused meal delivery services featuring slow-digesting ingredients to stabilize blood sugar.  “While probiotic and prebiotic fiber has been trending in food and drink for years, as with sodas like Ollipop and Poppi, some indie brands with stated fiber benefits are taking advantage of the rise in weight loss drugs to propose their products as a more natural alternative,” says food trend expert Kara Nielsen. High-protein snacks and portion-controlled packaged foods are also thriving, as they help users manage their appetite and meet nutritional goals. According to the most recent State of Specialty Foods report, snacks like jerky and cheese remain top sellers. Because GLP-1 users often spend less on groceries (about 6% less), grocers might adjust their merchandising strategies for these shoppers.  5. Human-Grade Pet-Friendly Food According to Pew Research, most Americans (62%) own a pet and nearly all pet owners (97%) say their pets are part of their family. Unsurprisingly, consumer demand for functional food extends to their animals. Gourmet pet treats made with human-grade ingredients are growing. The number of pet bakeries and secret pet menus is rising. Pet-friendly restaurants and cafes serving snacks and drinks for humans and their pets are also on the rise. You can even find dog food trucks when you take your pal for a walk. Another growing trend mirroring their human counterparts: pet food delivery services. Human-grade fresh pet food has increased in popularity, pushing dry food’s global market share down to 67% versus 99% a decade ago. And, like humans, pets can now also have customized meal plans tailored to their dietary needs, such as grain-free or allergen-free options. 6. Growth in Global-Inspired “Swicy” and Sweet More than 70% of U.S. counties now have an Asian restaurant, according to the National Restaurant Association’s What’s Hot report. And while world flavors have been trending for a long time, sweet and spicy (“swicy”) meals and snacks and pan-Asian desserts are becoming more ubiquitous. “What’s new about ‘swicy’ is the level of heat and the global cuisines offering it. [New chiles are] testing palates but also increasing consumer understanding and appreciation for the wide world of chile peppers,” says food trendologist Nielson.  “Instead of Mexican cuisine being a primary source of chile-enhanced fare, Korean, Thai, and regional Chinese cuisines offer new avenues for flavor adventure.” Entrepreneurs are also capitalizing on the demand for unique Asian desserts, such as bright purple Filipino ube pastries and ice cream, the viral Dubai chocolate, or chewy Japanese mochi donuts. 7. Small-Batch Sustainable Food and Drink As a top trend in this year’s National Restaurant Association’s What’s Hot report, sustainability is the most significant factor that “impacts where customers choose to eat out.” This is good news for small business owners: 48% of consumers trust independent businesses over corporations to sell them sustainable food. Zero-waste grocery stores–stores that sell products without packaging–are a growing opportunity. As more Americans favor banning or reducing plastic waste, zero-waste stores are gaining popularity.  Similarly, an interest in reducing food waste is growing. Upcycled food brands like Renewal Mill use surplus grains and pulps to create flour and baking mixes. And The Ugly Company takes misshapen fruit and turns it into dried fruit snacks with a purpose and a story. Sustainability and local sourcing have opened other opportunities. Urban microfarms, for instance, help small business owners grow fresh produce in small spaces to sell directly to local restaurants or farmers markets. This story was produced by NEXT and reviewed and distributed by Stacker.