Geopolitical tensions, energy and labour costs are reshaping catering and hospitality supply, and bringing new opportunities, according to Fresh Direct’s Summer Market Review
Escalating geopolitical tensions and high domestic labour costs are reshaping global catering supply and bringing new opportunities across key categories, according to leading hospitality supplier Fresh Direct.
In its Summer 2026 Market Review, released this week, the company has outlined the scale of disruption affecting agriculture and logistics, the impact on its core product lines, and areas of resilience.
Among growth areas, it highlighted prepared produce as seeing increased momentum, as chefs and caterers look to save labour costs.
In response, the Sysco GB-owned company has added several products to its prepped range, including a vegan roast potato, a fruit salad mix, watermelon wedges and prepped apple slices.
“Over the past year, our prepped fruit range has expanded significantly,” the report states. “The category is experiencing rapid growth, with chefs increasingly turning to high-quality, ready- prepared options to deliver consistency and save time in the kitchen.”
Along with innovation in prepped lines, the company has invested in premium fruit and advanced breeding technologies such as AI-driven avocado research and pangenome-supported banana development.
MD Andy Pembroke said: “In the hospitality sector we all continue to adapt to a range of market pressures, from labour costs to global trade dynamics, alongside geopolitical tensions and increasingly unpredictable weather patterns affecting agricultural production and international supply chains.
“Yet there is also real opportunity. Diversified sourcing, sustainability leadership and category innovation are strengthening resilience across the fresh supply chain,” he added.
The company has responded to increased disruption in the supply chain with more direct to grower partnerships and achieving 100 per cent LEAF Marque certification across all contracted British growers.
“The past winter saw challenging conditions across several key growing regions in Europe, however, thanks to the strength of our supplier partnerships and the dedication of growers and farmers across our network, fresh produce availability has remained strong,” said Pembroke, writing in the report’s foreword.
For an in-depth interview with Fresh Direct, see the next issue of Fresh Produce Journal, out June 2026.
