With the constant modifications to tariff regulations by President Donald Trump’s administration, consumers are adapting their purchasing habits to navigate through an uncertain global climate in an effort to reduce costs.
During a virtual event hosted by Manufacturing Dive and Food Dive, Ivan Torossian, consulting director at GlobalData, highlighted the struggle many companies face in balancing innovation with economic challenges brought about by inflation and supply chain uncertainties due to pending tariffs.
Torossian, along with Megan Bullock from Conagra Brands and Franz Guzmán from California State University, discussed strategies for food manufacturers to tackle these obstacles and continue developing new products and processes.
Amid the ongoing global trade war, Torossian emphasized the need for food manufacturers to devise strategies that prioritize consumer satisfaction and value in the face of cost pressures and uncertain market conditions.
As innovation continues to evolve, Bullock highlighted three essential components that remain constant in product development: convenience and value, health, and flavor and experience.
Social media and viral trends have significantly influenced consumer preferences, driving a demand for bold and buzzworthy flavors in food products.
With the traditional stage-gate model for product innovation falling short in keeping up with rapidly changing consumer interests on social media, companies are now rethinking their innovation processes to bridge the gap and generate quick returns.
Leading companies like Conagra are adopting adaptive innovation and leveraging artificial intelligence to accelerate product development, reduce time-to-market, and ensure cost-effectiveness.
AI revolutionizes food innovation by analyzing data points to identify emerging consumer trends, optimize variables like taste and texture, and enable brands to tailor products to specific consumer segments.
While challenges such as data overload and regulatory hurdles exist in utilizing AI, there is a growing need for companies to embrace and understand the technology to enhance strategic decision-making.