2024 NPD Report Says F&B Sector is Ramping Up Innovation Efforts Despite Challenges

A 2024 NPD report by TraceGains shows that the F&B industry is increasing innovation efforts, with 76% of respondents planning to boost NPD spending. "Better for you" formulations, sustainable packaging, and plant-based alternatives are seen as key innovation drivers, with ESG initiatives gaining importance. Brands are also turning to AI technologies to enhance efficiency and competitiveness in product development.

Despite the positive outlook on innovation, brands face challenges such as rising production costs, demand fluctuations, and regulatory uncertainties. Brands are urged to focus on regulatory compliance and labeling accuracy to maintain consumer trust. Additionally, many brands struggle with outdated technology platforms and manual processes in managing product formulas and recipes. Transparency in the supply chain remains a pressing issue, with companies opting to keep certain R&D aspects in-house for intellectual property protection.