Market research is a key player in launching a successful new food product.
Food brands should have a clear understanding of their consumer preferences, their needs, market trends, and competing brands. This data will help them craft a food product that has a positive impact on their target audience.
Food development market research can be done using multiple methods. While the chosen method depends on a brand's unique needs, common ones include in-home usage tests, focus groups, and taste tests.
Below, we'll dive into why this research is important, common methods, and more.
What is Food Product Development Market Research?
Food product development market research refers to the gathering of consumer feedback that will help culinary brands make informed, data-driven decisions about a new item.
More specifically, market research can reveal…
- Consumer preferences and behaviors
- Consumer purchasing habits
- Consumer interactions with competitor food products
- What current products are performing well
- Consumer demand for certain products
- New data and details about untapped markets
With roughly 15,000 new food products hitting the shelves each year, this type of information is crucial in creating a unique product that stands out, while still being enjoyed by consumers.
Types of Food Product Development Market Research
There are multiple ways a brand can begin the food development market research process.
Below, we'll review IHUTs, focus groups, and taste testing for how they aid in food development research. You'll find that each method, while different, provides food brands with valuable data on how to make a fantastic product.
In-Home Usage Tests (IHUTs)
With in-home usage tests, rather than conducting taste tests in a focus group facility, participants are able to consume and review the food product in their homes.
They are a great way to collect feedback from a target audience in their natural environment or as they would if not participating in a market research study.
Participants in the brand's desired test markets are able to eat or drink the food product for several weeks, providing fresh and reliable feedback along the way.
This type of methodology is especially helpful because it lends first-hand insight into how participants interact with a product.
This provides helpful details about usage, allowing brands to enhance design features.
Focus Groups
Conducting focus groups is another useful tool for brands developing a new food product.
Focus groups are a form of qualitative research led by a moderator that gathers data from a small group of participants about a product, service, or brand. In the case of food product development, the participants would provide their honest feedback about the item in a group discussion-based format.
Focus groups are beneficial for developing new food items because they draw out detailed feedback from consumers who would purchase that item in stores.
For example, a well-known cereal brand organizes a focus group session with a diverse group of parents and children to refine their latest product offering.
During the session, participants are invited to sample the new cereal flavor, with children providing immediate taste reactions while parents discuss nutritional content and ingredient preferences.
The brand also presents several packaging design options, gathering detailed feedback on visual appeal, readability, and perceived healthiness.
Insights from these discussions help the brand adjust the flavor profile to better suit children's tastes and optimize the packaging to highlight key nutritional benefits, making the product more attractive and informative to their target market.
Recommended Reading: Why Focus Groups Are Important for New Product Development
Taste Tests
Taste tests are one of the best research methods when developing a new food item.
Often run in a controlled environment, taste testing is somewhat similar to focus groups. Each method involves a group of participants from a specific target audience sharing opinions about a product.
With taste testing, however, the subject remains focused on the sensory details of the food product.
Participants will record their feedback which will then be delivered to the food brand conducting the research. Using this direct feedback, brands can make improvements to their product's taste, texture, and so on.
This is an especially key research method for brands to consider because sensory attributes play a huge role in consumer purchasing habits.
Using our example of the snack bar, if it had unpleasant aftertaste but the brand never conducted taste testing, it would be a huge financial risk to launch it.
Why Market Research Is Important for Food Product Development
Market research can help food brands develop an enjoyable product that consumers buy again and again. Below, we'll cover some of the key reasons why conducting food product development research is necessary.
Understanding Consumer Needs and Preferences
It's crucial for food brands to understand consumer needs and preferences when creating a new food product. Without this information, the brand could create an item they assume is good, but consumers may not have the same opinion.
Market research methods gather the detailed insights brands need to create a food product consumers love.
Common insights here include:
- Flavor
- Texture
- Ingredient quality
- Packaging
- Dietary requirements
These details help tailor a product based on the needs of a brand's target audience. As a result, it has a greater chance of meeting consumer expectations, leading to a successful food product.
Identifying Market Opportunities
Analyzing current trends through market research methods helps to identify gaps in the market.
This benefits food brands because it allows them to discover emerging demands and capitalize on them.
A good example of this is the growing interest in plant-based foods and organic items. When brands have an understanding of niche areas like this, they can create new products that meet these specific consumer interests.
When brands understand these opportunities, they also become a strong competitor against rivals, allowing them to capture more market share.
Reducing Risk
Market research can also reduce the risks associated with developing a new food item.
A food brand may think they've just developed the best new item to hit the shelves, but because they skip market research, the item could be a complete flop.
Not to mention a huge waste of time and money.
Research provides culinary brands with clear insights that help to inform decision-making, which ensures the product will align with what consumers would like.
This is why a method like IHUTs can be such a useful tool, as they help identify potential issues, improve packaging, and highlight any other details that can impact consumers before a product launch.
Ultimately, market research reduces the risks associated with launching a new product, leading to higher rates of success.
Competitive Analysis
Monitoring the competition is also important for food brands to do.
Keeping an eye out for what key rivals are up to can show a food brand how they can improve their own services. Tracking the competition isn't so brands can begin copying others, but instead stay ahead of them.
For example, let's say that the snack bar brand wants to gather data on other popular snack bar brands.
After partnering with a research team, the brand would receive important information on competitor products.
This information includes:
- Product analysis
- Branding
- Pricing strategy
- Marketing strategy
The food brand can use this information about their competitors to their advantage, ensuring their product is unique.
Improving Marketing Strategies
Conducting market research provides food brands with helpful insights about consumer behavior, preferences, needs, and purchasing patterns.
Using these insights, brands can understand how to effectively communicate with their audience, leading to higher customer acquisition and retention.
Additionally, market research will help brands identify the best marketing channels and develop effective messaging.s a result, this leads to higher engagement levels and a boost in sales performance.
Food brands can rely on market research to deliver actionable insights about their offerings, saving them time and money while also improving product quality.
Food Product Development Case Study Example
Learn more about a recent IHUT project completed for a new food product to gain a better understanding of how the process works with a market research company.
IHUT Project Overview
Our team completed an IHUT project for a new food product with households across the United States. Participants were recruited, qualified, and asked to confirm their interest in participating.
Once participants passed each of these requirements, they were shipped samples of the product and were required to:
- Download an app
- Register an account
- Use the product
- Regularly provide feedback
The in-home usage test took 4 weeks to complete. During this time period usage of the food product was monitored, participants were routinely engaged, and various messages were sent.
Feedback from participants was collected before the product arrived, when the product arrived (first-reaction), during usage, and after the test was completed.
Recruiting IHUT Participants
Recruiting for IHUTs requires a well-thought-out process. Drive Research follows an exclusive in-house approach our team has built for testing new food projects.
Our method uses a step-by-step and task-oriented approach to project management from kickoff through the completion of the IHUT project.
Step One
The IHUT recruitment process began by programming an online survey to pre-screen the audience through email invitations.
The process to recruit IHUT participants for the food product tests started with emails to a randomized sample of those who fall into the targeted demographic using a national email list.
Step Two
Those who qualified received a re-screening confirmation call to ask additional questions and verify the core qualification criteria (i.e., shipping address, details about how to fully participate in the project).
Step Three
The recruitment for the food product IHUTs separated participants into two groups:
- Those who have never used the product before but have brought products made by the brand previously
- Those who have used the product before
A total of 75 participants in each group participated in the IHUT (150 in total).
Targeting Criteria Included:
- Primary grocery shoppers
- Those aged 25 to 49 years of age
- A mix of genders (at least 30% male)
- Must have purchased products made by the brand before
- A mix of preferred grocery stores
- Must reside in the U.S.
- Must have completed at least some college
- Must be employed or a student
- Must have a total annual household income of at least $50,000
Step Four
The client placed a one-page instruction sheet in the shipment to explain the app download and registration process.
This instruction page included a step-by-step breakdown of testing the food product such as:
- What the expectations are
- How to download the app, register the account, and fill out the feedback surveys
- What the engagement will entail
Step Five
Following shipment, our team assisted with engagement and reminder phone calls, emails, and texts to ensure the highest potential participation in the IHUT.
What Was the Incentive for Participating in the IHUT?
In addition to keeping the product, participants were offered a $75 incentive for fully participating in the 4-week test.
This ultimately helps the project achieve a high participation rate. The gift cards were sent promptly after completion of the 4-week test.
Learn more about why incentives are important to increase participation in research!
Contact Our Product Development Research Company
Conducting food product development market research is an essential step brands can take to ensure their items are successful. Using a variety of research methods, culinary brands will be able to learn actionable insights about their target market.
At Drive Research, we work with clients and industries across the country to ensure their products perform well. Our team will partner with yours to determine the unique needs of your consumers, helping to craft the perfect product.
Interested in receiving a proposal for your next project? Contact us today using any of the methods below.
- Message us on our website
- Email us at [email protected]
- Call us at 888-725-DATA
- Text us at 315-303-2040
Emily Taylor
As Director of Operations, Emily does more than wrangle data. Her work includes executing company OKRs, company-wide project management, training/onboarding, team culture initiatives, and more!
Learn more about Emily, here.
