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.

man picking drink

Pursuing a value-added reformulation strategy gives brands the opportunity to:

  • Optimize 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

2023 consumer food purchase drivers

Our latest proprietary global study reveals consumers are checking ingredient and nutrition labels significantly more than 2 years prior.  

Which consumer benefits should you consider adding when formulating or reformulating your products this year?

Learn more

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 look beyond price for brands that provide the 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, with 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.
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 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, texture and sensory science, 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™.

Contact our experts