The Official 2025 NPD Report
What happens when innovation outpaces infrastructure?
New research from TraceGains reveals a growing gap between food and beverage brands’ bold innovation strategies and the outdated systems still powering their product development.
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Building on our annual tradition of surveying the food and beverage (F&B) community, the 2025 NPD Report highlights what’s fueling innovation throughout the industry—and what’s slowing it down. With input from nearly 200 professionals across multiple departments, a pattern has clearly emerged: while the drive to invest and prioritize new product development (NPD) is strong, so are the factors holding brands back.
The innovation boom meets a digital bottleneck
In 2025, 83% of brands say they’re increasing investment in innovation—more than half by 11% or more. AI adoption is also accelerating, with 17% of companies “all in”—nearly double last year’s rate. But behind the headlines is a reality check: 82% of teams still depend on manual processes like spreadsheets, emails, and paper-based systems to bring new products to market. And only 2% report that their NPD process is fully digitized and automated.
This disconnect creates risk. While AI in food product development and sustainability in innovation dominate the conversation, most companies still lack the digital infrastructure to move faster, reduce errors, and scale smarter.
Is the global trade environment making you more or less likely to develop new products?
How reliant is your product development process on manual methods (e.g. spreadsheets, email, paper-based workflows)?
Why this matters
In a market defined by rising consumer expectations, evolving regulations, and constant supply chain disruption, new product development in the food and beverage industry isn’t just about creativity—it’s about speed, data, and precision.
When traceability, regulatory compliance, and sustainability goals are non-negotiable, teams relying on manual tools are already behind.
What you’ll learn in the 2025 NPD Report:
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Where innovation investment is going—and why
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How AI is gaining traction in product development
- What’s holding back digital transformation
- How traceability and sustainability are reshaping NPD
- Why PLMs still struggle to win over the industry
Who this resource is built for:
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R&D, innovation, and NPD leaders
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Quality, regulatory, and compliance teams
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Digital transformation and operations professionals
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CPG executives navigating product portfolio shifts
A Sneak Preview: The Official 2025 NPD Survey
Innovation Investment Surges for the Third Year Straight
In the face of economic uncertainty, supply chain volatility, and shifting global trade dynamics, food and beverage (F&B) brands aren’t scaling back—they’re doubling down. For the third consecutive year, innovation is trending upward, with 83% of companies increasing their NPD investments in 2025. Over half plan to boost spending by at least 11% or more, signaling a strategic pivot toward reinvention rather than retreat.
This surge isn’t driven by optimism alone; it’s rooted in necessity. Reducing ingredient and manufacturing costs and meeting consumer demand for healthier products are tied as the top drivers of innovation, each cited by 45% of respondents, with competitive pressure close behind at 39%. As inflation and resource constraints squeeze margins, brands are prioritizing cost efficiency without losing sight of evolving health trends. At the same time, tightening regulations are accelerating reformulation efforts and pushing transparency to the forefront.
TAKEAWAY
Taken together, these forces reveal an industry at a turning point. Innovation is no longer a future-focused initiative—it’s a realtime response to rapidly changing conditions.
Get the full report
Don’t let outdated systems stall your next big idea. Discover how food and beverage leaders are closing the gap between product innovation strategy and execution—and how you can, too.
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