KANSAS CITY — The Trends and Innovations: US State of Product Innovation webinar from Food Business News and Cypress Research compiled survey data that unveiled insights behind research and development priorities that will fuel product innovation over the next 12 to 18 months.
The survey found manufacturers are shifting focus away from product invention toward innovating brands within their portfolios and reformulating existing products. When asked to rank the importance between innovation, renovation and invention, innovation reigned supreme at 90% of respondents. A focus on product renovation followed at 75%. Invention ranked the lowest priority at 61%, a 6% drop since 2024.
The top priorities for innovation included an increased focus on existing brands and product portfolios and cost savings.
Keith Nunes, editor of Food Business News, said roadblocks such as government regulations and tariffs were drivers behind the pivot to product innovation.
Additionally, consumer desire for products with added benefits such as protein, energy and fiber is a factor.
“Functional food is having a moment, and manufacturers are trying to respond to that perceived demand,” Nunes said.
The survey also found manufacturers are becoming more risk averse in product development, choosing to focus more on existing products rather than create new brands.
“I think what we’re seeing in this year’s reporting is that food processors are swinging back to a safer risk position,” said Marjorie Hellmer, president of Cypress Research.
Survey data also listed the trends manufacturers are most influenced by in product development. The top results included clean label at 65%, cost reduction at 64%, GLP-1 medications at 49% and “desirable” ingredient additions at 45%.
A new category added to the survey this year was federal and state regulations.
“The push of the (make America healthy again) movement has people on edge, and they’re waiting for the next domino to fall, whether it’s at the federal level or the state level,” Nunes said.
When asked what factors are influencing projects chosen to work on, the top influence was customer demand at 83%, a 3% drop from 2025. Another category with a notable jump was government regulations at 40%, a 6% jump from 2025. Additionally, sustainability considerations steadily have dropped since 2024. The influence landed at 27%, down from 38% in 2024.
The top ingredient priorities for food manufacturers included clean label improvements at 76%, protein at 52%, flavors at 47%, colors at 44% and functional ingredients at 36%.
When compared to previous survey results, clean label has significantly jumped in priority since 2024, up from 58%. Protein has jumped almost 30%, up from 24% in 2024. Colors also has received a significant boost in priority, up from 16% in 2024.
The survey also listed the top regulatory roadblocks food manufacturers expect to impact product development strategies. The banning of “artificial” ingredients led the results at 61%, followed by individual state ingredient bans at 42%, and the formal definition of “ultra-processed foods” at 39%.
“(This data) clearly articulates what product developers are worried about,” Nunes said. “There are just a lot of unknowns in terms of timing, scope and impact.”
To view the 1-hour on-demand webinar fromFood Business News and receive the survey’s full list of insights,click here.
