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Consumers are Driving Innovation in the Food Industry
With access to more information than ever before, consumers are reshaping how food manufacturers approach innovation. In a landscape where shopper preferences are rapidly changing and inflation is impacting spending habits, innovation has become a key driver of growth for food companies.
Companies like Pringles maker Kellanova, now a part of Mars, are embracing consumer trends such as protein to drive sales through innovation. By leveraging tools like artificial intelligence for product development and data analysis, companies are able to cater to the diverse needs of consumers.
Food Dive recently spoke with Nico Amaya, President of Kellanova North America, about the evolving landscape of product development in the food industry and the increasing importance of innovation.
The Importance of Innovation in the Food Industry
According to Amaya, innovation has always been crucial in the food and beverage sector. With consumers seeking personalized solutions tailored to their needs, companies must stay attuned to these insights to drive growth. Post-COVID, innovation has ramped up significantly as companies adapt to changing consumer demands.
Despite a pullback in consumer spending, innovation continues to drive growth by offering differentiated products that cater to both indulgent and health-conscious consumers. Brands like Eggo Protein and protein-infused Pop-Tarts are examples of how companies are innovating to meet consumer expectations.
The Role of Innovation at Kellanova
Kellanova has seen a surge in innovation contributions to sales, with a 40% increase from the previous year. By investing in research and development, as well as promoting new product launches, the company is driving growth through innovation.
The Impact of Artificial Intelligence
AI is playing a significant role in transforming operations within food companies like Kellanova. By leveraging data and analytics, AI enables companies to anticipate consumer trends, create new products, and enhance advertising strategies. The use of AI is expected to continue evolving, driving efficiencies and improving decision-making processes.
Overall, the evolving landscape of innovation in the food industry underscores the importance of staying agile and responsive to consumer needs. By embracing new technologies and leveraging consumer insights, companies can continue to drive growth and meet the evolving demands of the market.