What are the key challenges and trends in food and beverage innovation? A Summary
- Food and beverage innovation faces rising costs and supply instability
- Climate change and geopolitics threaten global commodity and trade flows
- Consumers demand plant-based, functional, indulgent and clean-label options
- Cost-of-living crisis makes affordability a major innovation barrier
- Brands collaborate to cut costs and spark creative product development
Food and beverage is facing an uphill battle in its efforts to innovate.
Supply and production costs are rising, climate change is endangering commodity supplies, geopolitical unrest is threatening trade, and to top it all off, investor uncertainty persists.
But what about the innovations themselves? What are the challenges faced in actually creating the food and beverage of the future? And what does that future look like?
Challenges in F&B innovation
“The biggest challenges are surrounding all the competing priorities,” says Alisia Heath, vice president of R&D at food tech company NotCo.
Consumers are embracing multiple trends, including plant-based, high-protein, high-fibre, indulgence, functionality, and fusion, leaving manufacturers uncertain about what to focus on.
Should they create clean-label products or add functional benefits? Go for gut friendly or lean into luxury?
“Consumers today are so knowledgeable,” says Heath. “They’re really pushing to have the full, complete package.”
Added to this, shoppers are struggling against the ongoing cost-of-living crisis, meaning price is an issue.
The future of F&B innovation
Manufacturers, says Heath, are increasingly working together to innovate.
Industry partnerships help to cut costs as well as pooling resources and ideas.
A recent example of this is, of course, Oreo and Reese’s “playing together” to create a range of products combining the two famous flavours. And Heath expects this trend to continue into the future as manufacturers reap the benefits of cross-brand of collaboration.
So, who’s next? Will Ferrero Rocher pair up with Snickers? M&Ms with KitKat? The possibilities really are endless!
Watch the full interview with Alisia Heath to find out more about the future of innovation in food and beverage.
