Inflation: hidden cost or opportunity?
Formulating consumer-preferred products while managing costs is a challenge
How product priorities are balanced today can have a long-term impact on your competitive positioning and brand equity in the future.
Consumers are driving demand for healthier and more sustainable products. At the same time, food and beverage manufacturers are facing persistent supply challenges, regulatory requirements and record-level inflation.
Discover how partnering with a team of Ingredion cross-functional experts can deliver consumer-preferred products.
Pursuing a value-added reformulation strategy gives brands the opportunity to:
- Optimise costs
- Maintain consumer-preferred taste and texture
- Add clean label ingredients
- Advance nutrition, health and wellness claims
- Formulate sustainably
- Accelerate speed to market
Retailers are putting pressure on brands to take the lead
Savvy retailers are managing category dynamics pushing leading brands to advance category development and justify increased prices with added consumer benefits.
Nimble retailers have accelerated value-enhancing innovation in their own private label products, striking a balance between price and consumer-preferred benefits across their traditional economy focused lines and the burgeoning premium private label segment.
Source: Innova, Trends in Private Label, 2021
50% of consumers say "value for money" has become more important in the past year
Source: Innova Lifestyle & Attitudes Survey 2022, Consumer Insider: Food Inflation – Consumer Impact, Global, July 2022
Consumers will not simply choose the least expensive products. They will seek brands that deliver benefits they value.
- In the last 12 months, 21% of global consumers have purchased more products that are sustainably grown / produced.1
- 30% of global consumers indicate nutritional content / benefit has become a “more important” factor in food and beverage. 65% of global consumers willing to pay more for products with a reduced-sugar claim. 1,2
- Permissible indulgence will continue as consumers adjust their tight budgets to make room for small rewards. Deliver on the enticing taste, comforting creaminess and satisfying crunch consumers crave.
- Consumers are looking for value-for-money food and beverage across categories including sauces, dairy, ready meals, baked goods and more.
Sources:
1. Innova Lifestyle & Attitudes Survey 2022, Consumer Insider: Food Inflation – Consumer Impact, Global, July 2022
2. ATLAS, Ingredion Proprietary Research, 2020
Ingredion can accelerate your value-added reformulation strategy
Ingredion has the technical and sensory expertise, broad portfolio, global reach and local perspective to guide you in creating a value-added reformulation strategy that manages costs and drives consumer preference.
As experts in taste and texture, protein fortification, and sugar and sodium reduction, Ingredion can help make your brands healthier and more sustainable while delivering the same eating experience your consumers love. With Ingredion, your brand can Be What’s Next™.