The global trade war and ongoing tariff regulations have created a challenging environment for food manufacturers, forcing them to innovate while managing cost pressures. In a recent virtual event hosted by Manufacturing Dive and Food Dive, industry experts discussed strategies for navigating these challenges and continuing to develop new products and processes.
Ivan Torossian, consulting director at GlobalData, emphasized the need for food manufacturers to create strategies that not only satisfy consumers but also provide value for their money. With the uncertainty in the market, companies are facing intense cost pressures while trying to maintain their innovation pipelines.
Megan Bullock, predictive science director at Conagra Brands, highlighted the importance of innovation in product development. She mentioned that consumer preferences are constantly evolving, driven in part by social media and viral trends. Companies need to adapt quickly to these changing preferences to stay competitive.
Traditional product innovation models are no longer sufficient in today’s fast-paced environment. Companies are adopting adaptive innovation strategies that allow for quick pivots based on emerging trends. Conagra, for example, leverages artificial intelligence to accelerate innovation, reducing development time and costs.
AI technology enables companies to analyze vast amounts of data to identify consumer trends and optimize product variables like taste, texture, and cost. By utilizing AI, brands can create personalized products tailored to specific consumer segments.
While AI presents challenges, such as regulatory hurdles, Franz Guzmán, a consultant and marketing professor at California State University, emphasized the need for companies to embrace the technology and understand its potential benefits. AI is not meant to replace human jobs but rather to enhance strategic thinking and elevate the industry’s capabilities.
In conclusion, food manufacturers are facing unprecedented challenges in the current economic climate. By embracing innovation and leveraging technologies like AI, companies can stay ahead of the curve and meet the evolving needs of consumers in a rapidly changing market.
