WESTMINSTER, CO — TraceGains, a leader in integrated compliance, nutritional calculation and labeling, and new product development (NPD) software for the food and beverage industry, released its latest survey report, “R&D and Product Innovation in the Food and Beverage Industry.”

The report, based on responses from more than 250 global food and beverage leaders, revealed that despite outdated manual processes being a challenge for many brands, 76% are planning to increase their NPD spend in 2024, a 12% jump over last year.

The annual survey found that brands are planning to increase product innovation efforts to meet consumer demand (42%), combat rising costs (46%) and stay competitive (51%). At the same time, however, 56% of brands reported a lack of internal tools to manage product formulations and recipes, highlighting a clear need for solutions to help automate and streamline work.

“Our research reveals a clear imperative for brands to invest in product innovation as numerous transformative shifts coalesce across the industry forcing them to act,” said Paul Bradley, senior director of product marketing at TraceGains. “While it’s evident that brands require robust tools and solutions to navigate these challenges, a significant gap still exists in internal resources that may hinder their progress. At TraceGains, we’re committed to empowering brands with the technology and insights needed to thrive in this fast-moving industry.”

Other findings from TraceGains’ 2024 NPD report

• Brands are still concerned over macroeconomic factors that could impact their planned investments, from rising production and labor costs (58%), fluctuating demand and commodity pricing (53%), availability of ingredients and materials (46%), challenges with talent acquisition (36%) and a lack of regulatory clarity (28%).
• When it comes to managing product formulas and recipes, 37% of brands still rely on manual processes, 25% are struggling with staffing challenges and 23% acknowledge working on outdated technology platforms.
• Brands recognize that harnessing artificial intelligence (AI) is critical to staying competitive. More than one-third (36%) are already testing the waters for NPD. Another 53% are considering AI for sourcing ingredients and materials and product formulation.
• Many brands are opting to keep portions of the R&D process in-house to protect recipe formulations and intellectual property, including product concept ideation (70%), recipe formulations (74%), ingredient selections (70%), product development (73%) and packaging (57%).