Food innovation unraveled: Hype versus real impact

The consumer food industry has experienced a surge of disruptive innovation in food products over the past decade. From plant-based meats to insect protein bars and precision fermented milk proteins, these products have promised to revolutionize the way we eat. However, a recent report by Rabobank reveals that many of these innovations have failed to live up to the hype.

Despite initial excitement and investor interest, numerous trends in the food industry have struggled to gain traction with consumers, resulting in limited revenue growth and profitability challenges. Rabobank's report highlights the significant lesson learned by investors, particularly those from outside the food and agriculture industry: changing how consumers eat is more challenging than changing what they eat, especially when there are familiar and better-tasting alternatives available.

Shift toward incremental innovations

In the coming years, the industry can expect to see a shift towards more incremental innovations and fewer total disruptive innovations. With fewer disruptions overall, space will be created for more incremental innovations on retail shelves and in restaurants. Retailers, restaurants, and their suppliers must align their evolving innovation pipelines to capitalize on these opportunities.

"While disruptive innovations have not met our expectations this time around, the quality of disruptive food products is anticipated to improve in the future and may catch us off guard. While enjoying the benefits of incremental innovation, it is crucial to keep an eye out for the next big thing, as we do not want the future of food to pass us by,” says the Rabobank.

Read the full report ‘Disruptive food products prove to be more hype than bite’

Research.rabobank.com