In the monarchy of food branding, innovation has become paramount, as highlighted by recent research conducted by TraceGains, a global ingredients marketplace.
A survey encompassing the insights of 261 leaders from both small-scale and large-scale food brands worldwide unveiled a compelling trend: despite grappling with outdated manual processes, an impressive three-quarters (76%) expressed intentions to invest in New Product Development (NPD) in 2024, marking a noteworthy 12% surge from the previous year’s statistics. These revelations surfaced within TraceGain’s latest research report, ‘R&D and Product Innovation in the Food and Beverage Industry’.
Findings on the way
The survey’s findings extended beyond mere statistics, shedding light on nuanced industry trends and aspirations. Notably, a significant majority (60%) of respondents identified health-focused “better for you” formulations as the most promising avenue for driving industry evolution in 2024. Furthermore, 36% of participants disclosed ventures into the realm of Artificial Intelligence (AI) within their NPD endeavors, showcasing a progressive stance towards technological integration.
Evidently, brands have begun to align action with rhetoric regarding Environmental, Social, and Governance (ESG) initiatives. An impressive 44% of respondents emphasized supply chain traceability, while 42% emphasized the use of sustainable ingredients. Equally notable, 48% recognized sustainable packaging as a pivotal driver of innovation in the foreseeable future.
Despite facing multifaceted challenges, brands exhibited unwavering determination to escalate product innovation efforts. Top motivations included maintaining competitiveness (51%), navigating escalating costs (46%), and meeting evolving consumer demands (42%).
Nonetheless, a staggering 56% of brands cited a lack of internal tools for managing product formulations and recipes, underscoring the urgent need for automation and streamlining solutions. Noteworthy macroeconomic factors were also identified, including rising production and labor costs (58%), fluctuating demand and commodity pricing (53%), and challenges pertaining to talent acquisition (36%).
Regarding formulation management, outdated practices persist, with over one-third (37%) of brands still reliant on manual processes. Furthermore, staffing challenges plagued a quarter of respondents, while 23% grappled with outdated technology platforms. Looking towards innovation strategies, approximately one-third (32%) of manufacturers expressed intentions to pivot towards new plant-based offerings, while 26% prioritized water and/or carbon-neutral strategies.
Bottom Line
Paul Bradley, Senior Director of Product Marketing at TraceGains, articulated the imperative for brands to invest in innovation amid a landscape ripe with transformative shifts. However, he emphasized the pressing need for robust tools and solutions to overcome existing hurdles.
The full report, encompassing these insights, is available for download on TraceGains’ website. Notably, TraceGains’ recent acquisition of Barnstaple-based software company NutriCalc signifies a strategic move to enrich its offerings in the food and beverage sector, catering to the evolving needs of its UK bakery clientele.