As the food industry becomes increasingly competitive, companies must optimise their new product development (NPD) workflow and develop a clear project roadmap to stay ahead of the curve.
By streamlining your NPD process and making use of available technology, you can bring your products to market faster and more efficiently. This article is an actionable guide to NPD in the food industry, summarising the main stages to consider for developing innovative food products that represent your brand and satisfy your customers.
In the food industry, NPD is a meticulous process that involves creating new, innovative food products or enhancing existing ones to meet evolving consumer preferences and a dynamic market. This could involve developing something new from scratch but also enhancing aspects of an existing product such as flavour, size or packaging.
The NPD process requires a nuanced understanding of the marketplace, keen foresight into future food trends and a rigorous approach to testing and quality control. It's an intricate balance of innovation, consumer insight and technical feasibility which, when successful, can help companies keep up with new market trends or tap into a new and exciting demographic.
Trend analysis is a vital component of the NPD process, helping companies identify a clear demand for their products as well as reflect the changing needs and tastes of their audience. Here are just a few examples of recent trends that have been particularly influential:
The 7 critical stages in the food NPD process are as follows:
Each stage is critical to the success of the overall process. Proper planning and execution at each stage can mean the difference between success and failure. For this reason, smart protocols such as stage-gate control should be in place that prevent steps from being skipped or shortcuts from being taken within each of the 7 stages.
The starting point of any NPD stage-gate process will involve generating new ideas and concepts. In this stage, the project team will start by discovering the project objectives and requirements. This involves asking key questions related to trends in the food industry, the needs and preferences of target demographics, and any gaps in the market for innovative new food products. Teams will then engage in a variety of research activities, which could include the following:
Project scoping helps to determine the feasibility of the ideas generated in stage 0. This stage involves creating a list of specific project goals, deliverables, tasks, costs, and deadlines. If the proposals generated in stage 0 are feasible and no alterations are required, the project will move on to the product development stage.
Market research is a crucial aspect of the project scoping stage. A primary example of this is a SWOT analysis, which helps to identify the strengths and weaknesses of the product idea, as well as the opportunities and threats that the product may face in the market. This information can then be used in conjunction with consumer feedback and concept testing, increasing the likelihood of developing a successful, high-quality product.
This is where your product concept comes to life. The product will be developed in line with the agreed-upon parameters set out in the project scoping stage. This is where your product prototype will be formulated in the factory and refined, before proceeding to the verification and validation testing stages to determine if further iterations are required. This stage also provides an opportunity to begin visualising how the product will be packaged, marketed and launched.
Open communication is vital at this stage in the process, so that team members and stakeholders are aligned with the product concept, target audiences and set deadlines. While the original project scope will be an important source of truth, adjustments are to be expected and regular reviews will be key to staying on track. Every detail of this process should also be fastidiously documented to guarantee consistency and reproducibility in subsequent production batches.
Testing is essential to the NPD process to ensure the product has been developed in line with the original project specifications or requirements. This is especially important in the food and drink industry where products must be tested so that they comply with food safety standards. Various tests help to verify the taste, texture, nutritional profile and smell of the product, as well as rigorous allergen testing and analyses of its shelf-life and packaging integrity. This means manufacturers can be confident that their new product is safe, high-quality and reflects their initial project goals.
Once you have established that the product was developed correctly in the verification stage, it’s time to validate whether the correct product has been made. This process involves consumer testing to determine whether customers will actually buy the product once launched. At this stage, businesses may obtain feedback via focus groups. This will help to validate the product or identify attributes that may need to be adjusted before launching the product. This is a critical stage in food NPD management as the customer ultimately decides the success and profitability of the product. If everything goes well during validation testing, then your product is ready for launch.
The product launch, also called commercialisation or release, is the stage you have been working towards throughout the entire project. This is when all the hard work pays off and your product is released into the market. The product launch will typically be backed by a marketing strategy to promote sales, this can range from free in-store tasters to introductory pricing. At this stage, you should be as receptive as possible to stakeholder and consumer feedback, as this will generate key insights for the post-launch review and any future iterations of your product.
A post-launch review is a vital part of NPD management. It aims to identify what went well during the NPD process and where improvements could be made. For example, it could be that there were pain points or inefficiencies at a particular stage in the process, allowing teams to improve and expedite future projects. All stakeholders must be represented in the post-launch review so that the evaluation of the entire NPD process is as well-rounded as possible.
By clearly mapping your NPD process out to include each of the above areas, with stage-gate protocols in place to ensure all aspects are considered at each stage gate, your business can benefit from a much smoother and more accurately planned NPD process.
Want to learn more? Download our free guide to Food and Drink NPD here or request a demo of our food product development software.