As consumer preferences evolve faster than ever, food manufacturers are reimagining their innovation strategies with the help of artificial intelligence and real-time behavioral data. Industry leaders shared these insights at the recent State of Innovation in Food Manufacturing virtual event hosted by Manufacturing Dive and Food Dive on April 9.
Adapting to Economic and Consumer Realities
Amid ongoing global economic uncertainties, including inflation and supply chain disruptions, manufacturers are under pressure to maintain product pipelines while managing tight margins. “Companies want to innovate, but they’re also under intense cost pressure,” said Ivan Torossian, Consulting Director at GlobalData. He emphasized the need for manufacturers to balance consumer satisfaction with value.
Conagra Leads with AI-Powered Innovation
Conagra Brands is at the forefront of this transformation, leveraging AI to accelerate product development timelines and deepen insights into consumer behavior. According to Megan Bullock, Predictive Science Director at Conagra, AI has reduced the innovation cycle from six months to just six weeks. Instead of traditional focus groups, the company now uses behavioral data, analyzing online searches, purchase patterns, and social media trends.
Bullock noted that while the core pillars of innovation—value, health, and flavor—remain constant, the nuances are shifting. Consumers are drawn to bold, social media-friendly flavors but often distinguish between what’s entertaining and what they want to consume. “Social media is a real-time feed, but it’s also full of noise,” she said.
“Adaptive Innovation” Is the New Norm
The traditional stage-gate model of product development is increasingly giving way to more agile approaches. “Leading companies like Conagra are adopting adaptive innovation models—flexible platforms that can pivot quickly as trends evolve,” Torossian said.
This approach includes “renovation” strategies, where companies update existing products rather than launching entirely new ones, enabling faster time-to-market and reduced risk.
Spotlight on GLP-1 and Personalization
The growing interest in GLP-1 weight loss drugs has also influenced food consumption patterns. Instead of rushing to develop new products, Conagra first adapted its packaging to highlight GLP-1-friendly benefits and continues to monitor demand before further innovation.
AI also aids in formulation decisions—fine-tuning taste, texture, and even packaging colors based on what resonates with target segments. “AI will enable brands to create hyper-personalized products, tailored to consumer segments or even individuals,” Torossian said.
Navigating Challenges with Strategic Thinking
Despite its benefits, integrating AI into product development comes with challenges, including data overload and regulatory complexities. Franz Guzmán, consultant and marketing professor at California State University, urged food companies to embrace AI as a strategic partner.
“It’s not going to replace jobs—it demands we level up our strategic thinking,” Guzmán said.
As the food industry faces mounting pressure to evolve, AI-driven adaptive innovation may be the key to staying relevant in a rapidly changing marketplace.