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:
- 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?
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.
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™.