TraceGains, a company operating in integrated compliance, nutritional calculation and labeling, and new product development (NPD) software for the food and beverage industry, released its latest survey report, R&D and Product Innovation in the Food and Beverage Industry. Based on responses from more than 250 global food and beverage leaders, TraceGains found that despite outdated manual processes being a challenge for many brands, 76% are planning to up their NPD spend in 2024, a 12% jump over last year when 64% invested in product development. Brands are also walking the talk when it comes to ESG initiatives. Following a rise in ESG awareness from 64% in this August 2023 report, 44% are now prioritizing supply chain traceability, 42% are using sustainable ingredients, while 48% believe sustainable packaging will be a large innovation driver in the months ahead.
Amid signs of progress after a few challenging years for the food and beverage supply chain, brands are planning to dial up product innovation efforts to meet consumer demand (42%), combat rising costs (46%), and stay competitive (51%). Even with their enthusiasm, however, 56% of brands reported a lack of internal tools to manage product formulations and recipes, highlighting a clear need for solutions to help automate and streamline work.