Proposed federal ultraprocessed food rules could cost industry billions

Federal regulations defining ultraprocessed foods could cost the food industry 14.2 billion dollars annually, according to a University of Chicago study reported by Food Processing on October 27, 2026. Researchers calculated that food manufacturers would face 9.5 billion dollars a year in product reformulation expenses to avoid potential warning labels. [1]

Food Processing reported that manufacturers would face an additional 4.5 billion dollars each year in higher ingredient costs for the reformulated products. The study whitepaper noted that companies would recover these expenses through higher food prices, which would affect consumers regardless of whether a specific item meets the ultraprocessed definition. [1]

Cost is defined as the monetary value used up to produce goods or services. The anticipated regulatory changes follow an August report that the Department of Health and Human Services and the Food and Drug Administration submitted to the White House. [1][6]

The study operates on the assumption that federal authorities will establish a formal definition for ultraprocessed foods alongside a mandatory labeling program. Higher food prices across all product categories will serve as the primary mechanism for manufacturers to recover their operational and ingredient expenses. [1]