2025 NPD Report on Food and Beverage Innovation

This report presents findings from the 2025 NPD survey conducted by TraceGains, which involved nearly 200 professionals in the food and beverage industry. The objective of the survey was to identify the factors driving and hindering innovation in product development. Key insights reveal that 83% of brands plan to increase their new product development (NPD) budgets, with a significant focus on reducing costs and meeting health-conscious consumer demands. Despite the increase in innovation investment, many companies still rely on outdated manual processes, which are identified as major bottlenecks. The report highlights the growing adoption of AI in product innovation, although most brands lack the necessary digital infrastructure. Additionally, economic volatility and market conditions are cited as primary challenges facing the industry. The findings indicate a shift towards health-focused products, while interest in plant-based alternatives is declining. Sustainability efforts are also becoming more operationalized, with brands prioritizing traceability and sustainable practices in their product development processes.