Editor’s Note: To help food and beverage processors improve new product development strategy, Prepared Foods brings you a three-part series about interpreting trends from independent consultant, Suzy Badaracco, founder of Culinary Tides. This is the third of three installments.
In any industry, you rely on data to help you make the next bold business move.
Whether you are a retail store, manufacturer, ingredient supplier, or a foodservice operator looking to capitalize on the next food or beverage trend, having relevant data allows you to make better decisions that affect your bottom line.
So you gather all the data.
Internal data is based on what you are seeing and forecasting in your current business; and external data pulled from data houses give you a variety of data points for you to comb through.
But with all that data, it can be overwhelming trying to sift through the information so you can make your next move. Take the wrong step, and it could cost you valuable time and hundreds of thousands or even millions in product development and marketing, only to miss the mark or be behind the curve on a trend that is on its way out.
We get it, which is why we are helping you look at your data in a new way so you can maximize any trend opportunity and increase your bottom line.
In this three-part series, we explore how to navigate trends. This third installment is about differentiating yourself by watching neighboring industries.
The Challenge of Industry Tunnel Vision
We all know that factors outside an industry affect how we develop new products and offers. COVID-19 in 2020 was a master class in how something like a global pandemic and policies made on a local and global scale affect not only the way we do business but also what products and services we create based on needs and demands.
So, it makes sense that we should look to outside factors beyond our industry to give us better foresight into what we should create. If you focus solely on your immediate industry trends to determine what to develop–what's next–you’ll likely be navigating blindly or simply be left behind.
For example, if you’re a foodservice operator, you want to know what upcoming flavors will be popular to help you develop your next menu offering. You also want to watch how the tech industry might lead you to develop a new way to deliver that product. And understanding the travel industry can give you an edge on what flavors might emerge in 12 months that would affect your business decisions.
While many businesses react to trends, thought leaders anticipate them. By watching adjacent industries, you're not just following the trend but engaging it strategically.
Revenue and Adept Navigation Advantage
Watching adjacent industries can affect a trend and give you key insights to be ahead of the curve.
Here are a few mini-case studies showing how adjacent trends affect one another.
• Travel industry: If the travel industry highlights an uptick in Arctic expeditions, it's not long before Nordic cuisine experiences a resurgence in the food industry.
• Pharmaceuticals: Suppose the pharmaceutical industry is abuzz with drugs that target cortisol for weight management. In that case, the food industry might soon see natural cortisol-reducing ingredients, like ashwagandha, becoming popular in beverages.
• Fashion industry: The fashion industry's trends often spill over into the food domain. A revival of ‘70s fashion could lead to a resurgence in ‘70s-themed food and drinks, with packaging echoing the color palettes of the era.
• Home renovation & design: The paint industry often provides telltale signs of broader societal moods. Earth tones might hint at a more conservative mood, potentially heralding a recession and a return to comfort foods. In contrast, vibrant and wild colors may indicate optimism, suggesting a preference for eclectic global cuisines.
Conclusion
You need to know the changes that are happening in your industry. However, working in a silo will limit your innovation and stifle your confidence. You want to look at adjacent industries—to observe and interpret signals from neighboring sectors—so you can truly set your brand apart and navigate trends expertly. By embedding this approach, you don't just track trends; you anticipate and effectively navigate them, ensuring your brand remains relevant and you stay ahead of your competitors.
Capitalizing on a trend requires foresight and planning with the right data and ongoing support to give you an unbiased analysis of how trends are shifting. When a trend is obvious, it might be too late to capitalize on it and grow your bottom line.
You need information now to help you make decisions, as well as ongoing research, data, and support to catch the shifting trends so you can make clear business decisions.
