Social Media and At-Home Dining Driving Innovation in Food Industry
With social media and the trend of dining at home on the rise, food companies are facing increasing pressure to innovate at a rapid pace. In the past, food innovation was primarily associated with restaurants, where chefs would impress consumers with unique flavors and ingredients. However, with close to 40% of Americans dining out less frequently, consumers are now turning to grocery aisles for culinary inspiration.
This shift is presenting both opportunities and challenges for major food companies, according to industry executives and experts who participated in the recent virtual event, The Future of Food & Packaging Innovation, hosted by Food Dive and Packaging Dive.
Supermarket shelves are now stocked with a variety of innovative products that draw inspiration from different cuisines and trendy ingredients like pickles and hot honey. Consumers have a wide range of options to recreate the restaurant experience at home.
Mike Kyosto, Vice President of Menu Matters consulting firm, noted the increase in home kitchen innovation in recent years, with supermarkets offering global products and diverse options in the frozen food aisle that were previously unseen.
For companies, this means the pressure to launch standout products in a competitive market is mounting. George Vindiola, Head of Enterprise Research & Development at The Campbell’s Company, emphasized the need for speed in innovation, highlighting the rapid pace of change in the industry.
Keeping up with social trends, dietary preferences, and evolving demographics is crucial to avoid missing out on business opportunities in today’s fast-paced environment, Vindiola added. The influence of social media has accelerated the lifecycle of ingredient trends, with flavors gaining and losing popularity in a matter of months.
Companies are now faced with the decision of whether to chase every trend or focus on fewer, more impactful innovations. Campbell’s, for instance, is shifting its focus towards broader “platform innovation” for its Goldfish brand, moving away from limited flavors and collaborations.
Arlene Karan, former Chief Research and Development Officer for Hain Celestial, cautioned against relying solely on one innovation strategy, especially for smaller companies. With thousands of new products introduced each year, the failure rate is high, emphasizing the need for a diversified approach to innovation.
Launching a new product requires sustained investment and attention, similar to raising a child, Karan noted. Hain Celestial is adopting a strategy of investing in a few large, bold innovations supported by smaller bets to drive overall innovation growth.