Today we released our “2023 Food and Beverage CPG Innovation Report,” a survey of nearly 300 food and beverage professionals that explores the state of new product development and the shift to outsourcing as a way to contain costs and keep up with evolving consumer preferences.
According to the results, nearly all (86%) professionals responsible for food production and supply chain management feel overworked. Plagued by staffing shortages and operational inefficiencies, more brands are accelerating their use of contract manufacturers (co-mans). They’re also investing more in new product development (NPD), embracing digital tools to automate manual processes, and expanding their global footprint to diversify their supplier bases.
NPD on the rise
While private and national CPG brands rolled out fewer products in 2020 and 2021, companies are jumpstarting R&D efforts after years of supply chain disruptions. As many brands seek to regain a market advantage and meet evolving consumer preferences post-pandemic, TraceGains data confirm the expected rise in NPD.
- Nearly two-thirds (64%) of respondents plan on investing more in NPD over the next 12 months.
- More than two-thirds (67%) plan to modify multiple recipes (six or more).
- One-third (33%) anticipate the need to modify anywhere from six to 20 recipes, representing a 6% jump from the TraceGains June 2022 survey.
Co-mans: faster time to market, cost savings
After years of experimenting with co-manufacturers, brands have embraced this model of food production following historic global supply chain failures.
More than half (55%) now outsource more of their manufacturing compared to three years ago. Learn more about this trend and other solutions overworked food and beverage professionals are turning to for relief. You can access the full story from Food Industry Executive.