Dairy Processing - November/December 2022 - 16

development and R&D trends. So, the job
roles that dominate the study sample are
going to be R&D, some operations and some
executive management. "
About a third of respondents in this study
sample reported six or more processing
facilities, whereas a quarter of the sample
is either a co-manufacturer or they get their
products from a co-manufacturer.
The focus of the study had three key areas,
the first of which was on product innovation
and trends in dairy processing, as well as trends
in invention or true " breakthrough products "
new to the market. This typically involves
the introduction of a brand-new product or a
new brand versus innovation, which Hellmer
classified as tweaking products within existing
brands and within existing categories for
companies.
The survey also touched on formulation,
which includes adopting new ingredients
within existing brands and products and line
extensions.
While the data was collected mid-year,
participants were asked about trends prepandemic,
during the pandemic, and within the
next 12 to 18 months.
" Even with us fielding this mid-year this year,
we were asking them to project their product
development priorities all the way through to
the end of next year, " Hellmer said. " So, this
gives us a line of vision all the way through
next year. "
POST-PANDEMIC REBOUND
According to the survey, prior to the pandemic,
77% of respondents said they were focusing
on new product innovation within existing
brands or categories. While that number fell
to 46% during the pandemic, it has rebounded
- 76% of respondents said innovation will be a
priority over the next year. That rebound was
even more significant when it came to updating
formulations and using new ingredients within
existing brands - just 57% of respondents said
that was a priority pre-pandemic, while 65%
said that it is a focus post-pandemic.
One of the most notable data points
comparing pre-pandemic to post-pandemic
priorities falls within ingredient and
50% of companies expect to launch 1 to 5
new product concepts involving invention
(true breakthrough product development involving new brand introduction)
Q: About how many new product concepts does your company
expect to launch in the following areas by the end of 2022?
1-5
6-10
11-15
16-25
25+
Invention: Breakthrough product development; typically involves
introduction of new brands
35%
50%
33 4 4
Innovation: New products within existing brands and categories
5 62%
Formulation: New ingredients within brands and catagories
12% 52%
18%
16% 9% 3 4
10% 3 5
" As the business impacts of the pandemic
have slowed ... the activity within product
development is shifting back into high gear. "
Marjorie Hellmer, Cypress Research
43% to 54% of dairy processing professionals
expect their companies to increase new
product launches in 2023
Q: How will the number of new product concepts you expect your
company to launch next year (in 2023) change compared to this year?
Decrease
Stay the same
Increase
Invention: Breakthrough product development; typically involves
introduction of new brands
3
3
Innovation: New products within existing brands and categories
54%
53%
42%
Formulation: New ingredients within brands and catagories
2 52%
45%
DAIRYPROCESSING.COM | NOV-DEC 2022 15
43%
Source: Cypress Research
http://www.DAIRYPROCESSING.COM

Dairy Processing - November/December 2022

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