New product development is a costly business but it is essential to the growth of the food industry. Embarking on the development of a new food brand can be time-consuming, expensive and disappointing. It can also be the best thing that has ever happened to a company/manager as it propels the business into rapid growth and profitability. Failure to innovate will result in an out-of-date brand that shrinks into the background within a highly competitive food market.

 The rate of NPD continues to rise year-on-year in the majority of food and drink categories, despite the significant resources required to launch a new product, and growing competition. Consumer awareness of nutrition and healthy eating has resulted in a raft of 'better for you' products in recent years. Meanwhile, healthy indulgent products are also making their mark, particularly in countries with a fast-growing functional food sector, and in regions where consumers demonstrate a growing interest in added value products. Premium products are also encouraging value sales growth and prompting investment in NPD, particularly in sectors such as chilled food and bakery.

This second edition study provides further insight into best practice NPD strategies in the fast-paced global food and drink market. The report focuses on trends, drivers, innovation and marketing in major regions and primary food categories around the world, providing market forecasts to 2013.

Report coverage:

Chapter one offers an introduction to the NPD process and the drivers and regulations involved. We look at different types of NPD and the supply and demand that goes with them. We also ask 'what prompts the development of a new food or drink product'?

Identifying the other trends and developments that companies are investing in can be a great source of inspiration. Chapter two pinpoints the key NPD trends in foodservice and their influence on the retail market, including the impact of celebrity chefs, super-healthy products and authentic indulgence.

NPD processes vary from company to company based on budget, resources and personal preference. Chapter 3 identifies tried and tested idea generation methods, and offers insight into best and worst practice NPD strategies. Using insights from a number of NPD experts and industry executives, we identify ten unique stages - from idea generation to evaluation of product success - with actionable recommendations to encourage efficient implementation in your company.

Chapter 4 looks at the most important NPD strategy - consumer insight. This chapter explores some of the influential and emerging food and drink industry trends and consumer drivers which are expected to inspire NPD to 2013. We also assess NPD opportunities and consider the hurdles that will results from expansion, line extension and a move towards new distribution/growth channels.

Launching the 'next big thing' in food and drink, gaining first-mover advantage and inspiring customers to purchase your brand over those of your competitors are the primary aims of new product launches. Chapter 5 pinpoints global profit hotspots by category and region, including analysis of market growth and potential by value and volume 2003-2013 for five major food sectors: bakery and cereals, chilled food, confectionery, frozen food, and sweet and savoury snacks.

Chapter 6 predicts the ten major NPD trends to watch globally over the next five years, based on primary and secondary research conducted specifically for this report. This concluding section summarises the key trends already touched upon through the report, with a detailed spotlight on the top three: anti-additives, on-the-go convenience and premiumisation and speciality foods.

Preface
Report methodology
The author
Aims of the report

Executive summary

Chapter 1 Introduction to the NPD process: Drivers and regulations
Introduction
Supply and demand: Chicken and egg
What prompts the development of a new food or drink product?
Responding to regulatory changes and government campaigns
The impact of the EU health and nutrition claims regulation on healthy NPD
The difference between health and nutrition claims

Chapter 2 NPD trends in foodservice and their influence on the retail market
Introduction
One size does not fit all
Celebrity chefs
Foodservice adopts an innovative approach
Trends inspiring NPD in the global foodservice market
Super-healthy
Premium and speciality foods
The culture of food
Authentic indulgence
The El Bulli influence

Chapter 3 Best-practice NPD strategies
Introduction
Stage one: Idea generation
Stage two: Filtering the good from the bad
Stage three: Know your market
Case study: Modernising an established brand
New product launch – consumer insight case study: Magic Masala Bombay Mix
Consumer insights and solutions
Stage four: Check the idea with the logical crew as well as the sales and marketing division
Stage five: Avoiding traffic jams in the project pipeline by creating a ‘test’ product
Stage six: Checking with the consumers
Stage seven: Understanding the role of retailers
Sampling for success
Stage eight: Convincing the retailer to stock your new product
Gaining the approval of the buyer
Stage nine: Identifying unique merchandising opportunities
Stage ten: Ongoing evaluation of product success

Chapter 4 Consumer trends driving NPD
Introduction
The prominent role of the foodie
Ethnic food
Product and line extension opportunities are rife in ethnic foods
Targeting Polish and Muslim communities
Free-from foods
Understanding your new product’s carbon footprint
Healthy indulgence

Chapter 5 The next big thing by category and region
Introduction
Asia-Pacific
Eastern Europe
North America
Western Europe
Latin America
Bakery
Chilled food
Confectionery
Case study: Tangerine
Frozen food
Sweet and savoury snacks

Chapter 6 The ten major NPD trends to watch
Introduction
Premiumisation and speciality foods
Europe
Facing the tide of change – anti-additives
On-the-go convenience