18 - New product development: The case of gluten-free food products

Abstract

New product development (NPD) is a key activity for the global food industry. With all markets undergoing significant change in short time scales, e.g. new products appearing, products which have reached the end of their life cycles being withdrawn, and many existing products undergoing modifications in their processing, formulation, or packaging, even if not apparent to consumers. Development of new or existing food products and processes, considered here as NPD activities, has several key drivers. Most commonly, changing consumer requirements and market trends drive food companies. A secondary driver is changing technological developments in food processes, ingredient functionality, and scientific understanding of food formulation and processing, which can offer new product possibilities. Changes in legislation or food regulations may also drive companies to modify or develop products, for example if it is recommended that certain ingredients be reduced or avoided in food formulations. Consumer demand for food products is complex, responsive to many external factors, and changes over short and sometimes unpredictable time frames. Such shifts in consumer demand require food companies to be responsive, through their marketing specialists, to opportunities for new food products, which must then be delivered by the scientific and technological capabilities of the company. NPD is an extremely risky enterprise, and huge numbers of new food products fail on launch. Failure of a new product costs a company significant time and money wasted, and may undermine consumer confidence in the company or its other brands.