Product Innovation in Packaged Food

October 2024

Following years of challenges inhibiting launch activity, due to stockouts, SKU rationalisations and product framework optimisations, manufacturers are now ambitious about providing value to consumers through healthier, more sensorial, and culturally inclusive products. Leveraging the power of marketing, new occasions and promotions, brands and private label alike are intent on launching new products that align more closely to consumer values.

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Key findings

Leveraging brand strength is best choice for manufacturers navigating value challenges

Line extensions of popular and well-known brands remains a popular strategy in the packaged food industry contributing to over 90% of launch events from June 2023 to June 2024. Consumers recognise the quality and taste that comes along with brands, while new brands come with a higher risk in an already volatile market. Private label has also been seeing success from investments in their brands - creating new lines and products.

Flavour and function are becoming more intertwined in NPDs as consumers are unwilling to sacrifice

New product launches are finding balance in features of indulgence while also advancing health and wellness and sustainability priorities. With the challenge of catering to diverse palates, manufacturers are deploying a range of innovation strategies to deliver on consumer expectations, including unique partnerships, trending flavour inclusions (eg spicy) and attractive packaging.

Nascent innovation opportunities abound for those that look beyond their portfolio coverage

As the packaged food industry is set to face more varying demands in the future, from consumers to government, brands should be striving for a greater level of omnipresence among consumption occasions and “healthifying” offerings while also working to optimise product innovation capacities. Both strategies enable brands to act more swiftly to budding trends while also uncovering and embedding in longer-term consumer needs.

Product innovation in packaged food
Passport I nnovation : What's covered?
Key findings
Packaged food innovation overview by country
Packaged food innovation overview by category
Packaged food innovation overview by retailer
Leading supplier profiles: Nestlé and PepsiCo
Top three innovations in packaged food
Health and Wellness: Natural and better-for-you opportunities remain vast
Health and wellness demands lead to reduction and functional formulations
New innovations continue to inject elements of health and wellness
Nature’s Path, leading organic cereal brand, finds growth as a healthy indulgence
Sensory Experience: Flavour experimentation grows to support consumer demands for new
Classic products take on cultural twists with the inclusion of new flavours and spice
Innovations highlight textural and cultural components while remaining attentive to taste
As multicultural innovations grow, brands should strive for balance and authenticity
Unlocking Value: Brand and private label investments accelerate
Private label advances affordable upgrades while big brands reinvest
NPDs are justifying prices with indulgence factors, pack size transparency and value features
Opportunities for occasions fluctuate following years of disruption
Recommendations : How to win
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