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.