6 Trends Shaping Food & Beverage Product Development in 2027 

Food innovation is accelerating. The way we develop it is still stuck in the past. 

Over the last few years, F&B companies have poured more money into innovation, embraced AI and faced mounting pressure to move faster. 

But one stubborn problem keeps showing up: Manual work. 

Discover what TraceGains industry research says about the forces reshaping food & beverage innovation.

1. NPD investment keeps climbing

More money is flowing into innovation. Expectations are rising with it. 

Graph and statistic showing trend of food and beverage teams investing more in NPD year over year

Translation: 

Innovation budgets are growing. So is the pressure to make every dollar count. 

2. NPD is under pressure to pick up the pace 

More pressure + more complexity + more products = more work. 

Top 3 factors driving more investment in NPD from 2024 to 2025: 

#1 Cost pressure 

Find smarter ways to manage ingredient and manufacturing costs. 

#2 Consumer pressure 

Keep up with demand for healthier products. 

#3 Competitive pressure 

Stay innovative or get left behind. 

The bottom line: 

“Change is inevitable in NPD. Turning every change into a fire drill isn’t. Yet today’s teams are being asked to make faster, more complex decisions with the same limited resources.” 

— Paul Bradley, Sr. Director of Product Marketing, TraceGains

3. Manual NPD workflows are hitting a limit

Innovation moves faster, while manual work sticks around. 

Side bar graph showing that in 2024, 37% said too many manual processes were the top challenge with their formula management systems; in 2025, 2025 
56% remained somewhat dependent on manual processes; and in 2026, 2026 
59% cited disconnected systems and manual processes as key barriers to moving faster

In other words: 

We’re trying to innovate at 2026 speed with workflows built for 2016. 

4. AI is moving into the NPD mainstream

The AI conversation is changing fast. 

Digital slider graphic showing that from 2024 to 2025, AI skepticism in NPD decreased from 44% to 31%, and those "all in" on AI increased from 10% to 17%

By 2026: 

35% are exploring practical AI use cases 

Key takeaway: 
The question is shifting from “Should we use AI?” to “Where can it actually make us better?” 

5. Context determines AI’s impact 

AI can’t fix a disconnected NPD process by itself. 

If your teams are still: 

  • hunting through spreadsheets  
  • re-entering ingredient data  
  • comparing versions manually  
  • chasing supplier information  
  • passing files between systems  

…adding AI to the top of the pile doesn’t eliminate the pile. 

Circle percentage graph showing 41% in gradient blue

In 2026, 41% are using AI across NPD activities, from regulatory research and formulation to supplier and ingredient risk analysis. 

Industry insight:

“AI is only as useful as the data, context, and workflow surrounding it. The next leap is giving R&D and food scientists trusted intelligence they can actually act on.” 

— Paul Bradley, Sr. Director of Product Marketing, TraceGains

6. Connected product development software is reshaping the F&B stack

Modern product development puts connected intelligence closer to the work. From:

Siloed → Connected 
Manual comparing → Automated 
Late review → Earlier insight 
Disconnected data → Context-rich decisions 
AI hype → AI grounded in real food science 

In 2026, 58% of F&B leaders said that real-time connected data and AI-powered workflows will define the next era of F&B operations.

Circle percentage graph showing 58% in gradient blue

Lesson: 
Free teams to focus on innovation by connecting the data, workflows, and intelligence behind NPD. 

Your innovation strategy has evolved. Your NPD workflow should too. 

See what TraceGains product development software can do for F&B teams.

Sources: 

Frequently asked questions:

What is product development software and why does food and beverage need it?

Product development software connects the data, processes and teams involved in taking food and beverage products from concept and formulation through validation and launch, helping teams reduce manual work, improve collaboration and move products to market faster.

How is AI changing food product development?

AI is helping food and beverage teams accelerate formulation, evaluate ingredient alternatives, and assess nutrition, cost, and compliance trade-offs earlier. As industry research shows AI adoption in NPD is growing, connected ingredient data and workflows are key to turning AI experimentation into practical innovation while reducing manual work and reformulation delays.

Related Content

Specification Management Transforms Retail

Specification Management Transforms Retail

As brand owners, manufacturers, and suppliers grapple with increasing market pressures, it’s critical they ...
5 Easy Steps to Innovation

5 Easy Steps to Innovation

Innovation has always driven growth. It can be the foundation of R&D, a new approach to marketing, or it can be ...
Consumer-Driven New Product Development

Consumer-Driven New Product Development

As the economy struggles to claw its way back, a new, still-shifting reality looms for the food and beverage business.
No results found.

Pin It on Pinterest

Share This