Transforming Food Innovation: From SKUs to Sustainable Ecosystems – Insights from The Food Institute

Do you feel like many companies today are just trying to survive? It’s true. Innovation is taking a back seat. For instance, the number of new food and drink launches dropped from 50% in 2007 to just 26% in 2024, as reported by Mintel. Meanwhile, startups are nimbler, but research shows large corporations are twice as likely to fail in their innovations.

The phrase “differentiate or die” rings truer than ever. Consider brands like Liquid Death. They grew into a billion-dollar company simply by tapping into meme culture around water. This shows how much brand image matters today.

In the past, giants like Nestlé set the trends. They introduced products like spice mixes to encourage healthy cooking. Today, it’s TikTok and social media influencers that dictate what’s popular. They create and review products in real time, giving consumers immediate insights.

In a world where we scroll endlessly, being recognized is the key to true innovation.

It’s alarming that 85% of new consumer packaged goods (CPG) fail within the first two years, according to FoodNavigator. So how do we redefine innovation?

Beyond Products: Building Relationships

When you think about “innovation”, do you picture new snacks or drinks? That’s just part of the equation now. In 2025, consumers want:

• A brand that truly understands them.
• A community they can connect with.

Today, success means creating an ecosystem around your products. Take RecetasNestlé in Mexico. This platform offers recipes, cooking classes, and rewards. It personalizes content to cater to specific customer needs and became the second-largest recipe site in Mexico. Imagine your branded platform being that popular!

Success now is about more than just sales. It’s about community impact and cultural relevance. Before launching a product, brands must focus on building this relevance.

Interestingly, according to a recent study by Deloitte, brands that prioritize building customer relationships can achieve up to 30% higher customer loyalty. This shows how important emotional connections are.

Testing Ideas Before Launch

Startups often test ideas efficiently due to limited budgets. They create landing pages or run ads to gauge interest before developing a product. This helps them gather feedback early on.

A great example comes from SideChef, where we utilized AI for recipe creation. Before launching, we ran ads to measure interest and collected leads. This approach allowed for refinement based on tester input.

Big companies can adopt this strategy, too. PepsiCo Labs, for instance, tests new concepts weekly, quickly adapting ideas based on consumer response. Recently, they launched a seaweed snack in under a year using AI to identify trends.

Innovation is Ongoing

Remember, innovation isn’t just a project; it’s an ongoing capability. Think of it like a plant: without care, it won’t flourish. Innovation should be a continuous process, adjusting and evolving even after a product hits the shelves.

The key takeaway is that successful innovation never stops. It should be as dynamic as the market itself. In an era dominated by AI and social media, standing out is the new game. It’s not about being the newest; it’s about being the most noticeable.

So, as we venture into a world where attention is scarce, let’s redefine how we approach innovation—Focusing on connection and relevance is the future.

About the author: Anna Fedele di Catrano is an expert in food tech and business development, currently leading initiatives at SideChef. Her previous work includes leading digital strategies at Nestlé.

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