The effects of ingredient branding in the food industry: case studies on successful ingredient-branded foods in Japan

Abstract

BackgroundMuch of the previous literature argues that innovation activities are not as active in the food industry as in other industries. In particular, scholars have noted that research and development intensity in the food manufacturing industry is lower than in other industries. However, recent years have witnessed the development of strategies in which new ingredients, technologies, and designs are used in branded end products. MethodsDefining such products as ingredient-branded foods (IBFs), this study clarifies the processes and effects of ingredient branding strategies in the Japanese food industry. We classified the 105 IBFs cases into six product categories that included confection and dessert, drinks, seasonings, preservative foods, dairy products, and agriculture products. By organizing the key IB feature, we also classified them into four IB categories of health and functionality, manufacturing and processing, producer and geographical indication, and packaging. In addition, we extract various types of intellectual property related to ingredient-branded foods and analyze them. ResultsThe manufacturing and processing category for IBFs has the most cases, at 40.5% of the total, while health and functionality is the second largest as 30.6%. However, each product category has its own distribution range. In the confection and dessert category, manufacturing and processing is the largest. The categories of seasonings and preservative foods also have many IB cases involved with manufacturing and processing. Products with strong health functionalities stand out in the recent drink market. A similar tendency has been witnessed in agriculture products. ConclusionFrom the analysis, we conclude that many IBFs have been already introduced to the market and they have diversified in different product categories. IBFs based on manufacturing technologies and healthcare have been popular approaches, but we also find IBFs with new packaging designs and geographical identification.