There’s a natural ambition for market expansion beyond our own borders. We know there’s demand, but is it truly worth the investment and effort to enter the US market? This insider blog will help you determine whether you should or should not explore the US market, focusing on ensuring the cost-benefit aligns with your budget and expectations.
The Allure of the US Food Market
The United States presents a vast and diverse consumer base, making it an attractive prospect for food product businesses looking to expand internationally. With a population exceeding 330 million, the sheer scale of the market offers significant potential for growth and revenue. The US food market is projected to reach US$902.26 billion in 2025 and is expected to grow annually by 4.76% (CAGR 2025-2030) [1]. This robust growth indicates a healthy and expanding market for food products.
Consumer Preferences and Trends
Understanding the American consumer is crucial for success. US consumers exhibit diverse food preferences and nutritional needs, driving demand for a wide variety of products [2]. Current trends indicate a strong focus on health and wellness, with a significant portion of consumers actively avoiding sugars, artificial ingredients, and unhealthy fats [3]. There’s also a growing demand for convenience, with many consumers preferring quick meal solutions and ready-to-eat options [4]. Ethical considerations, such as animal welfare, environmental impact, and fair trade practices, are also increasingly influencing purchasing decisions [5].
Navigating US Trade Policies and Tariffs
Importing food products into the US involves navigating a complex web of trade policies and tariffs. The Harmonized Tariff Schedule of the United States (HTS) sets out the tariff rates and statistical categories for all merchandise imported into the US [6]. These tariffs can vary significantly depending on the product category and country of origin. Recent trade policies have seen tariffs ranging from 10% to 50% on various imported goods, including some food products [7].
Tariff Exclusions and Considerations
While general tariffs apply, there are specific exclusions and considerations for food products. For instance, certain agricultural products may have specific import requirements or restrictions imposed by agencies like the USDA. It’s crucial to consult the HTS for specific product codes and their corresponding tariff rates. Additionally, some trade agreements may offer preferential tariff rates for products from specific countries.
Regulatory Requirements and Compliance Costs
Beyond tariffs, businesses must contend with stringent regulatory requirements from agencies like the Food and Drug Administration (FDA) and the U.S. Department of Agriculture (USDA). Both imported and domestically-produced foods must meet the same legal requirements in the United States [8].
FDA Regulations
The FDA is responsible for ensuring that food products are safe, sanitary, and labelled according to US requirements. Importers must ensure that their facilities are registered with the FDA and provide prior notice of incoming shipments [9]. While there is no fee for FDA registration, compliance with regulations can incur significant costs. For example, compliance with the Preventive Controls for Human Food (PCHF) rule can cost small and mid-sized food businesses approximately $22,000 in the first year alone, with ongoing annual costs of around $8,000 [10].
USDA Regulations
The USDA, particularly its Animal and Plant Health Inspection Service (APHIS) and Food Safety and Inspection Service (FSIS), regulates the import of certain agricultural products, including meats, poultry, eggs, fruits, and vegetables. These agencies ensure that imported products do not pose a risk of introducing pests or diseases [11]. Prohibited or restricted items often include fresh meats, certain fruits and vegetables, and products made from animal or plant materials that do not meet US standards [12].
Cost-Benefit Alignment: Is it Worth It to Export Food to the US?
Exploring the US market requires a thorough cost-benefit analysis. While the market size and consumer demand are attractive, the costs associated with tariffs, regulatory compliance, logistics, and marketing can be substantial. Businesses must assess whether their product’s unique selling proposition and potential market share justify these investments.
Key Considerations to Export Food to the US:
- Product Suitability: Does your food product align with current US consumer trends and preferences (e.g., health-conscious, convenient, ethically sourced)?
- Financial Preparedness: Are you prepared for the initial and ongoing costs of tariffs, FDA/USDA compliance, and potential legal fees?
- Logistics and Distribution: Have you established a robust supply chain and distribution network within the US?
- Competitive Landscape: How will your product compete with existing domestic and international brands in the US market?
- Long-Term Vision: Is your business prepared for the sustained effort required to build a presence and grow in the US market?
The US food market offers immense opportunities for expansion, but it is not without its challenges. Success hinges on meticulous planning, a deep understanding of regulatory requirements, and a clear alignment of costs and benefits. For businesses willing to invest the time and resources, the US market can indeed be a rewarding venture. However, for those unprepared for the complexities, it can quickly become a costly endeavour.
Still looking to head to the US, Find a Time with Felicia Loo to discuss your regulatory requirements for exporting your product to the US.
References
[1] Statista Market Forecast. (n.d.). Food – United States. Retrieved from https://www.statista.com/outlook/cmo/food/united-states
[2] USDA Economic Research Service. (2025, January 5). Consumer Information and Labeling. Retrieved from http://www.ers.usda.gov/topics/food-choices-health/consumer-information-and-labeling
[3] NIQ. (2024, February 7). Food in America: A Tale of Two Consumers. Retrieved from https://nielseniq.com/global/en/insights/education/2024/food-in-america-a-tale-of-two-consumers/
[4] YouGov. (2025, January 14). America’s appetite for convenience: Trend report 2025. Retrieved from https://business.yougov.com/content/51271-us-convenience-food-report-2025
[5] Ethical Consumer. (n.d.). Food and Drink. Retrieved from https://www.ethicalconsumer.org/food-drink
[6] United States International Trade Commission. (n.d.). Harmonized Tariff Schedule. Retrieved from https://hts.usitc.gov/
[7] EatingWell. (2025, August 7). 6 Foods That Will Likely Be Impacted By the New Tariffs. Retrieved from https://www.eatingwell.com/new-tariffs-affected-foods-11787328
[8] U.S. Food and Drug Administration. (2024, December 11). Importing Food Products into the United States. Retrieved from https://www.fda.gov/food/food-imports-exports/importing-food-products-united-states
[9] U.S. Food and Drug Administration. (2024, October 9). Importing Human Foods. Retrieved from https://www.fda.gov/industry/importing-fda-regulated-products/importing-human-foods
[10] Food-Safety.com. (2024, September 27). Study: PCHF Compliance Costs Small and Midsized Food Businesses $22,000 in First Year Alone. Retrieved from https://www.food-safety.com/articles/9776-study-pchf-compliance-costs-small-and-midsized-food-businesses-22-000-in-first-year-alone
[11] USDA Animal and Plant Health Inspection Service. (n.d.). Traveling From Another Country. Retrieved from https://www.aphis.usda.gov/traveling-with-ag-products/another-country
[12] U.S. Customs and Border Protection. (2024, March 6). Bringing Food into the U.S.. Retrieved from https://www.cbp.gov/travel/international-visitors/agricultural-items