Here’s a quick question: what do new product innovation and basketball have in common? The answer is that both are competitive team sports where the goal is to make a basket. It’s just that food and beverage teams rely on consumers to value product appeal and make the winning shopping basket decision.

What are a new product’s winning attributes? Prepared Foods’ New Products Annual spans 12 distinct product categories and to read everything—from appetizers to snacks—is to find repeated trends of snacking, bold flavors, authentic ethnic and regional tastes and better-for-you (and better for earth) benefits.

Circana, a retail data and consumer insights analyst, also shares insights that guide food and beverage innovation. Here are just a few recommendations from three of Circana’s 2024 reports.

Balance Price-Value: In Circana’s Year-End 2024 Food and Beverage Market Outlook, Global Executive Vice President and Chief Advisor Sally Lyons Wyatt noted: “Consumers are driven by a demand for value, impacting both volume and price/mix growth. We’re noticing that channels offering everyday value have become more influential. E-commerce solutions also are increasing convenience and price transparency, with online transactions now driving 35% of food and beverage dollar sales growth, despite holding only a 10% market share. We expect consumers to continue leaning into private label, which saw a 3% volume increase over last year versus a 1% decline from mainstream brands as they selectively choose premium brands (+3% volume) that deliver the right value.”

Address Convenience, Health & Snacking: In Circana’s 39th annual “Eating Patterns in America” report, it noted 86% of eating occasions are sourced from home. “Despite easing inflation, consumers continue to face the cumulative impact of several years of rising prices and ongoing economic challenges,” said David Portalatin, Circana senior vice president and industry advisor, Food and Foodservice. “With dining out costing four times more than eating at home, many are cutting back on restaurant visits. Meal patterns have shifted as consumers spend more time at home and adapt to new daily rhythms. However, convenience and health remain top priorities, with consumers willing to spend on products offering added benefits, especially in the beverage space, where innovation is rising to meet these demands.”

Circana also highlighted what it called Daypart Disruption. “While breakfast, lunch, and dinner remain the primary meal occasions, their composition, timing, and sources are evolving to fit consumers’ daily routines. Breakfast now starts earlier, with mid-morning snacks away from home rising in popularity. Lunch has shifted significantly due to changes in workplace mobility, with lunchtime traffic falling to about half of pre-pandemic levels. Snack consumption is growing, with consumers increasingly preferring quick bites or meal replacements over larger meals. As snacking becomes more common throughout the day, the boundaries between traditional mealtimes will continue to blur.”

Deliver Convenience, Function and Compelling Brand Story: Last June, Circana released its 29^th Annual New Product Pacesetters report and honored the top 10 new foods and beverages that debuted in 2023 and generated the highest first full-year sales.

In particular, Circana noted ….

… an increase in slow cooker and casserole dish sales, likely due to their association with easy meal preparation and cost savings. “This reflects the ongoing demand for convenient solutions for complete meals or meal shortcuts,” its experts said. “Consumers are looking for ways to elevate the morning experience, as evidenced by Starbucks by Nespresso for Vertuo’s fifth-place ranking on the food and beverage Pacesetters list. Additionally, Nestlé collaborated with popular Kellogg’s brands to introduce Carnation Breakfast Essentials, Kellogg’s ready-to-drink breakfast meals, providing a quick breakfast option for consumers.”

… data shows that co-branding and licensing, as seen in the Carnation-Kellogg’s offerings, leverage the trust and loyalty that established brands enjoy, opening doors for expansion beyond their core categories. For instance, OREO cookies and Little Debbie snack cakes have made their way into the frozen aisle, with OREO Frozen Desserts ranking No. 4 on the food and beverage Pacesetters list, and Hudsonville Ice Cream’s Little Debbie flavors at No. 18.

… consumers increasingly sought functional benefits across the store in 2023. This demand for added value was likely driven by high inflation and a continued focus on well-being. The trend was particularly evident in the beverage sector, where products offering enhanced hydration, energy, and nutritional benefits were prominent, even among traditional carbonated soft drinks. PRIME Hydration, ranking No. 2 among food and beverage Pacesetters, capitalized on its appeal to a young audience and the excitement of new flavors. GHOST Energy, Electrolit, and Olipop, coming in at No. 6, No. 9, and No. 11 respectively, also offer a variety of added functional benefits.

What new product targets will your team pursue in 2025? Read on for a comprehensive, category-by-category review of trending new product technologies, tastes and textures!