The global packaged food market is expanding at a compound annual growth rate (CAGR) of 4.5% and will achieve more than $3 trillion in revenue by 2020, according to an Allied Market Research analysis. North America will continue to be the largest single generator of revenue during the forecast period, though Asia Pacific will be the fastest growing region, expanding at a CAGR of 5.4%.
Global growth will be led by demand in non-alcoholic beverages, baked goods, convenience foods and healthy options. The global beverage market alone is forecast to grow at a CAGR of 4.6%. But capturing this growth is difficult.
Nielsen research indicates that 63% of consumers like new product introductions and that 57% purchased a new product during their last shopping trip. Yet the Harvard Business Review has put the failure rate of new products at 60–80%.
Meanwhile, products introduced into the retail grocery channel fail at a rate of 70–80%, according to figures cited by the University of Toronto. While the top 20 U.S. food companies enjoy a success rate of 76%, the bottom 20,000 food companies succeed at a rate of just 11.6%.
How can flavor companies and product developers optimize their odds of success? According to Flavorcon 2015 speaker Barbara Busch (SENSANALYSIS), the low success rate of new product development (NPD) shows that too few products perform as expected.
To increase market success, development teams can establish a crucial linchpin between sensory science and market research by giving consumers a say at the development stage. Sensory creativity is another crucial tool in successful product development.
Flavorcon speaker Marie Wright, vice president and chief global flavorist at ADM/WILD Flavors and Specialty Ingredients, says that the flavor industry prides itself on creativity, but that the changing business model has altered that atmosphere. Wright believes that organizations can bridge creativity with market success.
To illustrate her point, Wright will present a talk that mixes creative insights with a fun-filled team-building creative exercise—with the goal of producing the “Taste of Flavorcon” in cocktail form. In essence, this will be an exercise in collaboration, creativity and design.
Presented by Perfumer & Flavorist magazine, Flavorcon 2015 (www.flavorcon.com) includes a tabletop exhibition in addition to in-depth conference sessions from leading industry experts. The conference is uniquely tailored for professionals involved in the development of flavors and food & beverage products. Registration is now open.
- Dates: November 15–17, 2015
- Location: Borgata Hotel Casino & Spa in Atlantic City, New Jersey