Grassroot Construction Dominates U.S. Food & Beverage Project Activity

---

Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

---

Summary

Current U.S. Food & Beverage capital spending is dominated by grassroot plant construction covering a diverse range of sectors.

---

New Plants, from the Ground Up

Industrial Info Resources data show nearly $22 billion worth of construction underway for new-build U.S. food and beverage plants, covering diverse sectors ranging from dairies to soft drinks to meat processing. The refrigerated warehousing & distribution sector easily leads current construction activity for both the number and value of these grassroot projects. Industrial Info Resources' coverage of the segment ranges from projects requiring more than $1 billion in investment down to a new $1.1 million, 10,000-square-foot warehouse at a distillery in east-central Colorado.

That $1 billion+ warehousing & distribution project comes from food and retail behemoth Walmart, which is building a refrigerated distribution center for perishable foods in Belvidere, Illinois, near rail lines and easy interstate access to the Chicago and Milwaukee markets. The company is plowing $1.2 billion into the facility, which will be outfitted with the latest in high-tech handling systems for items that need to be kept cold, such as fresh produce, eggs, flowers and all manner of frozen goods. The 1.2 million-square-foot facility is expected to begin operations next year.

Dairy-Based Construction--a Prominent Component

Projects for new-build dairy facilities feature in a distant second position to warehousing & distribution, but two blockbuster projects in this sector carry combined investment values of around $2.4 billion. The first comes from Daisy Brand LLC, which is dropping more than $1 billion on a new 1 million-square-foot manufacturing facility to produce the company's popular lines of sour cream and cottage cheese, which will be accompanied by a substantial wastewater treatment facility. The Food & Beverage Industry, and dairies in particular, are big spenders in the wastewater treatment sector, as touched on in the July 30, 2026, article - Industrial Wastewater Treatment Construction Abounds in U.S., Elsewhere.

The other substantial U.S. grassroot dairy project exceeding $1 billion is underway in upstate New York and comes from yogurt-maker Chobani, whose sales have been growing by leaps and bounds. The New York Times reported late last year that Chobani expected 2025 net sales to come in at $3.8 billion, representing 28% growth from the previous year--an upward trajectory that is expected to extend into this year. The new 1.4 million-square-foot plant in Rome, New York, will house 28 production lines capable of processing 12 million pounds of dairy products per day. The plant is expected to begin operating in 2028.

Other Notable Segments

Other Food & Beverage segments feature prominently in grassroot projects, notably beverage production and bottling, as discussed in the March 4, 2026, article - U.S. Soft Drink Projects Bring $2.4 Billion in Active Construction, which outlines current construction of a massive production, bottling and distribution center from energy drink maker Red Bull in western North Carolina and a $600 grassroot plant from a beverage copacker in Alabama.

Asian foods also make some substantial entries for current grassroot project activity, representing both frozen foods and condiments. After more than two years of construction, Kikkoman Foods, known for its soy sauce and other Asian condiments such as teriyaki sauce, plum sauce, sweet and sour sauce, and more, is in the final stretches of constructing a grassroot factory in Jefferson, Wisconsin. Kikkoman hopes to begin shipping product from the facility this fall. The plant will be based primarily on Kikkoman's soy sauce and soy sauce-based products and will join the company's other U.S. plants in Walworth, Wisconsin (operating since the early 1970s) and Folsom, California (operating since 1998).

Another significant Asian foods project comes from frozen foods provider CJ Schwan's, which is constructing a new-build manufacturing facility in Sioux Falls, South Dakota, that will produce eggrolls and steamed dumplings, largely supporting the company's Pagoda and Bibigo retail brands. The company expects to begin shipping products from the plant early next year.

Key Takeaways

• Grassroot construction for new plants is the largest-spending element in the U.S. Food & Beverage sector.
• Strong showings for current grassroot U.S. construction are being seen in refrigerated warehousing & distribution, dairies and the beverage sector.
• The top three new-build Food & Beverage Industry projects underway in the U.S. carry price tags of around $1.2 billion each and are being built in Illinois, Iowa and New York.

---

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).