Abstract In the agri‐food chain, while the impact of producers and consumers on sustainability has been well studied, food processing has been less explored. This position paper aims to discuss the potential of food processing to address all food and nutrition security (FNS) outcomes in order to achieve improved food system sustainability. First, FNS dimensions and the four pillars of agro‐food industry sustainability are defined, with a focus on ultra‐processed foods. Second, the food matrix concept is developed as a new paradigm to holistically address all FNS. It is concluded that food processing should become more involved in circular food systems and bioeconomy, and that we need to relocate food production, processing, and consumption to be more aligned with regional food production specificities. For this, minimal processing to preserve food matrices should be preferred. Therefore, the strong current tendency to develop reductionist and siloed innovative solutions to improve the sustainability of food systems should be questioned.