Advances in ingredient formulation and distribution tech are helping CPG brands respond to changing consumer expectations in faster, more cost-efficient ways. From AI-based product formulation to mobile convenience stores, we take a look at how startups are innovating in the space.
The goalposts for new food and beverage products are constantly moving. By the time a product goes through traditional research and development processes, evolving consumer expectations or competition from emerging D2C brands could hinder its success.
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In response, CPG giants like Mars, Danone, and Conagra have turned to tech solutions to speed up the R&D process, more accurately predict what consumers will purchase, and even develop novel ingredients to meet those demands. Distribution tech — like auto-replenishment and mobile convenience stores — is also helping brands directly serve their customers and gather incremental data, which can further inform R&D processes.
In 2019, McCormick & Company partnered with IBM and its newly developed Hypertaste, an AI-assisted “digital tongue” made up of sensors that replicate human taste. McCormick reduced the time it took to develop new products by 70% and tweaked formulations between 50 and 150 times before finalizing.
But incumbents aren’t the only ones innovating in the space — startups are also developing tech solutions to streamline product development from ideation to distribution. For example, Aromyx has worked to digitize taste for more efficient R&D processes, while Tastewise uses social listening to predict product trends.
Using CB Insights data, we identified 40+ early-stage companies looking to enable food & beverage product development and distribution.
This market map consists of early-stage private, active companies only and is not intended to be exhaustive of the space. Categories are not mutually exclusive and companies are mapped according to primary use case. The companies within the map have received seed/angel or Series A funding from January 2019 through August 2022.
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