Why Innovation is a Must in Today’s Food and Beverage Industry
In today’s food and beverage industry, innovation is no longer a choice—it’s the driving force behind growth, relevance, and survival. As consumer preferences evolve at unprecedented speed, fueled by trends like plant-based lifestyles, sustainable sourcing, and hyper-personalized nutrition, the message is clear: adapt and thrive, or stay stagnant and fall behind.
This is where forward-thinking companies distinguish themselves. Advanced digital tools such as product lifecycle management (PLM) systems and artificial intelligence (AI) have transformed how businesses operate. These technologies simplify complex processes, ensuring regulatory compliance, streamlining product development, and accelerating the journey from concept to store shelves. For the brands that leverage them, agility becomes second nature—delivering fresh, market-driven products faster, more efficiently, and more cost-effectively.
But innovation doesn’t stop at technology. True leadership in this space comes from challenging norms, exploring unconventional ingredients, and prioritizing transparency, wellness, and environmental integrity regardless of your reach and company size. Organizations that commit to continuous improvement don’t just meet consumer expectations—they set the standard, evolving into industry trailblazers that shape the market’s future.
The data makes it undeniable. Mintel’s Global New Product Database (GNPD) reports that by mid-2024, only 35% of global CPG launches qualified as genuinely new products—the lowest level of innovation Mintel has recorded since 1996. In the food and beverage sector, the numbers are even starker: just 26% of product launches from January to May 2024 were true innovations. The remainder were line extensions, reformulations, or packaging updates. While other CPG industries adapt more readily, food and drink manufacturers face unique challenges—complex supply chains, narrow margins, and logistical hurdles with fresh and temperature-sensitive goods. These barriers amplify the need for bold innovation to break through the stagnation.
Consider Nestlé’s resilience as a case study. According to a Brand Finance report, despite a 7% drop in brand value, Nestlé retained its position as the world’s most valuable food brand. This isn’t by accident. The company’s ability to pivot toward healthier, more sustainable products demonstrates how staying ahead of consumer trends can safeguard market leadership even in turbulent times.
Lay’s provides another compelling example. Climbing to the second spot in global brand rankings, Lay’s saw a 9% increase in brand value thanks to its groundbreaking product lines like Flavor Swap and MAX. By focusing on innovation and meeting evolving consumer tastes, Lay’s not only grew its value but also surpassed competitors like China’s Yili, which experienced a 6% decline. These success stories underscore the clear advantage of investing in creativity, agility, and forward-thinking strategies.
Now is the moment to lead. Embracing visionary solutions isn’t just about growth—it’s about earning trust, delivering value, and making an indelible impact on the industry’s future.
At the World Taste & Smell Association, we don’t just follow trends—we remove silos and shape them fusing science, psychology, holistic thinking, and data. By converting experience and groundbreaking research into actionable strategies, we help businesses forge deeper connections with their consumers.
We believe the future of food and beverage innovation is being written today. Let’s start a conversation about how our expertise can help you stay ahead as we advocate for the public good. I’d love to hear your ideas and Let’s explore how we can build the next chapter of sensory innovation together—schedule a call with me.
Be Well,
Mindy Yang @GoDolceVita
Co-Founder & Chief Engagement Officer
