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Food Product Development Strategy: How To Create Something That Sells

Learn how to create, scale, and market a food product successfully with expert strategies for ingredient sourcing, production, and branding.

Table of contents

Developing a new food product idea sounds exciting—until you realize how many things can go wrong.

Maybe the product doesn’t taste as good at scale as it did in small batches. Maybe your ingredient sourcing isn’t reliable. Maybe your suppliers can’t keep up with demand. Maybe consumers just don’t care as much as you thought they would.

The reality? Most new food product development efforts fail.

95% of new consumer products don’t make it—and the food industry is no exception. The ones that succeed follow a structured food product development process that balances consumer trends, supply chain efficiency, and marketing strategy.

A successful food product doesn’t just come from a great recipe—it comes from careful research, creative idea generation, a strong development process, and the ability to scale efficiently. 

Whether you’re launching a functional food, a new product, or revamping an existing product, following the right strategy can mean the difference between success and failure.


Understanding food product development

Food product development is unique. Unlike other consumer goods, a food company or product developer must balance:

  • Taste and texture consistency across different batches.
  • Ingredient sourcing that supports quality, sustainability, and scalability.
  • Portion sizing that satisfied consumer needs with minimal food waste.
  • Regulatory compliance and food safety to meet industry standards.
  • Sustainable packaging that preserves shelf life while appealing to the target market.
  • Product management that ensures smooth execution from concept to market.

A well-planned food product development strategy ensures all these elements work together. Without it, brands risk production delays, inconsistent product quality, and failure to gain market traction.


Top mistakes scientists and developers make in food product design

Many food scientists are highly skilled in food formulation, product design, and ingredient interactions, but that doesn’t always translate into a commercially successful food product. Here are some of the most common mistakes even the most experienced food scientists make:

1. Overcomplicating formulations

A product that works in the lab doesn’t always work at scale. One mistake food scientists make is using too many ingredients that are difficult to source or process efficiently. Food manufacturers need streamlined formulations that balance product quality with production feasibility.

2. Ignoring consumer trends

It’s tempting to focus on creating an innovative food product without considering marketing strategy. However, understanding consumer trends and target market preferences is key to a product’s success. A technically brilliant product that no one wants to buy won’t survive long in the market.

3. Not testing in real production environments

Food science in a controlled lab is different from large-scale food production. Without testing formulations in real manufacturing processes, problems like separation, oxidation, and product quality inconsistencies can arise—leading to production process failures down the line.

In the context of food production, operations are typically categorized into three scales:

3.1 Lab scale 

This initial phase involves small-scale experiments conducted in controlled environments to validate concepts and understand fundamental processes.

Example: Developing a new sauce recipe in your home kitchen and testing it among friends and family.

In South Africa, the Council for Scientific and Industrial Research (CSIR) provides infrastructure supporting laboratory-scale concept validation, assisting small, medium, and micro enterprises (SMMEs) in developing and testing new food products in controlled environments. 

3.2 Pilot scale 

Pilot plants are often used to simulate real production conditions and gather data necessary for designing full-scale facilities. This phase focuses on optimizing processes, identifying potential issues, and ensuring that the process can be scaled up efficiently. 

Example: Producing larger batches of your sauce in a shared commercial kitchen to supply local farmers’ markets or small retailers.

3.3 Full scale or industrial scale

Represents large-scale industrial operations where processes are implemented for commercial production to meet market demand. 

Example: Partnering with a co-packer to mass-produce your sauce for distribution in national supermarket chains.

Companies like Unilever and Tiger Brands operate extensive manufacturing facilities, producing a wide range of food products for both local and international markets. 

Collaborating with such established manufacturers or consulting with industrial engineering firms can provide insights and support for scaling up to full production.

4. Poor collaboration with product management teams

Developing a food product requires cross-functional collaboration. Food scientists, product managers, and marketing teams need to work together to ensure the final food product aligns with both scientific integrity and consumer expectations.

At Good Food Studio (GFS), we’ve trained food scientists and product developers who bridge the gap between technical excellence and market viability. 

Whether it’s functional food innovation, optimizing product formulation, or ensuring food safety, our team ensures that every product is designed for scalability, compliance, and market success.

5. Underestimating production costs 

Misunderstanding financial aspects, such as the Cost of Goods Sold (COGS), can jeopardize a business’s sustainability. COGS includes all direct costs incurred to create products, like raw materials, labor, and manufacturing overhead.  

Accurately estimating these production costs is crucial, failing to do so can lead to pricing issues and reduced profitability. 


The food product development process

A structured product development process helps minimize risk, reduce costs, and improve your chances of success.

1. Ideation

Recognizing trends, such as the growing demand for plant-based proteins, can spark new product ideas. Maybe it’s a high-protein vegan snack or a sustainable alternative to dairy-based condiments.

Ideation is the foundation of product development. It involves:

  • Improving existing products or creating new ones.
  • Identifying unmet consumer needs.
  • Exploring opportunities for innovation in flavor, function, or sustainability.

A great idea alone isn’t enough, it must be validated with research before moving forward.


2. Market research: Finding out what people actually want

A common mistake in food product development is creating something without verifying that there’s consumer need. Just because you love the product doesn’t mean customers will.

Before committing to any new product development, ask yourself:

  • Who is the product for? (Niche market, dietary preferences, lifestyle fit)
  • What problem does it solve? (Convenience, nutrition, premium flavor experience)
  • Who are the competitors? (And why will customers pick yours instead?)

Many successful food products thrive because they fill a specific gap in the market. Look at Oatly—its success didn’t come from simply making oat milk, but from owning the category by branding itself as the best functional dairy alternative.

Strong market research helps brands position themselves effectively before moving to product formulation.


3. Concept testing and product development 

Once you have a validated product concept, the next step is transforming it into a viable product.

This phase involves:

  • Developing flavor profiles that differentiate your product.
  • Testing ingredient combinations for taste, texture, and shelf stability.
  • Running small-batch trials to refine recipes and identify production process challenges.

For example, in the rise of functional food trends, prebiotic and probiotic ingredients have gained popularity. These components are added to foods to promote gut health by enhancing beneficial bacteria in the digestive system. 

Brands like Olipop are focusing on backing up health claims with scientific evidence, reflecting a growing consumer demand for functional beverages that are both enjoyable and beneficial.  

Testing early prevents costly reworks later. What tastes great in small quantities might change significantly in large-scale food production.


4. Viability: Assessing factors such as costs, benefits, and potential challenges

Striking the right balance between ingredient cost and product quality is challenging. Opting for cheaper ingredients may compromise quality, while premium ingredients can inflate costs. 

COGS encompasses all direct costs associated with producing a product, including expenses for materials, labor, and manufacturing.  

This is the point where many great ideas fail—not because they aren’t delicious, but because they aren’t viable. Before going any further, ask yourself:

  • Can I afford to produce this on a larger scale? If costs are too high, consider swapping expensive ingredients, negotiating bulk discounts, or adjusting packaging.
  • Are the ingredients easy to source year-round? If not, find reliable suppliers, explore alternatives, or plan for seasonal availability.
  • What’s the shelf life? Short shelf life means faster turnover and potential waste. You may need to adjust the recipe, use natural preservatives, or rethink storage options.
  • Will people pay enough for it to be profitable? If pricing feels too high, can you reduce costs without sacrificing quality? If it’s too low, can you market it as a premium product?

If the costs don’t add up, it might be time to adjust the recipe, packaging, or positioning.


5. Sourcing: Securing the right ingredients

A food product is only as good as its ingredients. Ingredient sourcing affects product quality, production costs, and supply chain efficiency.

Key sourcing challenges:

  • Supply chain disruptions leading to manufacturing process delays.
  • Ingredient variability causing inconsistent product batches.
  • Sustainability concerns affecting consumer trust and brand reputation.

Whenever possible, it’s best to:

  • Work with reliable food manufacturers to reduce lead times.
  • Establish backup ingredient sources for flexibility.
  • Plan for seasonal ingredient fluctuations to avoid shortages.

Sourcing isn’t just about finding the best price—it’s about ensuring consistent availability and quality while meeting food safety standards.


6.Prototype: Make, test and adjust

If you’re developing a prebiotic or probiotic food product, testing is even more critical. Unlike standard food products, live cultures (probiotics) or fermentable fibers (prebiotics) can behave unpredictably in different environments.

You need to ensure stability, effectiveness, and great taste—all while keeping the beneficial bacteria or fibers intact. Here’s how to develop and refine your prototype effectively:

1. Start with small batches

Since probiotics are living organisms and prebiotics need to interact with gut bacteria, you must test different formulas before committing to a final recipe.

Example: Probiotic-infused drinking vinegar

Let’s say you’re developing a kombucha-style rooibos vinegar with probiotic cultures. You might test:

By running small batches, you can observe which strains survive and thrive in your formula.

2. Stability & shelf life testing

One of the biggest challenges in probiotic/prebiotic products is ensuring live bacteria survive through packaging, shipping, and storage.

Live probiotic products (like kombucha or probiotic yogurt) need a stable pH and the right environment to keep cultures active. Prebiotic foods (like fiber-infused drinks or fermented snacks) need to retain their functional benefits over time.

Testing methods:

  • Temperature testing: Store samples at different temperatures (room temp, refrigerated, and warm conditions) to see how they hold up.
  • Time-based testing: Check bacterial counts over several weeks. Does the probiotic remain viable?
  • Packaging trials: Some probiotics degrade in light or air—would an opaque bottle or nitrogen-flushed packaging help?

Example: If your prebiotic fiber drink thickens too much over time, you might adjust the fiber content or hydration level.

3. Taste & consumer testing

Many functional foods fail because of taste—people want the health benefits, but they won’t sacrifice flavor.

Let a group of potential customers sample your product. Observe how they react to taste, texture, and aftertaste.

Ask:

  • “Would you drink this daily?”
  • “Would you prefer it sweeter, milder, or more tangy?”
  • “Does it taste refreshing ?”

4. Adjust & retest

Now, based on the results, tweak your formula.

The probiotics don’t survive → You may need a hardier strain or better protective packaging.

The flavor is too strong → Adjust fermentation time or add complementary ingredients (e.g., ginger or citrus).

The texture changes over time → Consider adding stabilizers (like natural pectin) to prevent separation.


7. Scaling production without losing quality

Scaling a new food product comes with manufacturing process challenges.

The key to scaling successfully is standardization. Every step of the process—from sourcing ingredients to mixing, cooking, or fermentation, needs to be precisely documented. 

Measuring by weight rather than volume, setting exact cooking times and temperatures, and identifying key control points ensure that every batch is as close to the original as possible. 

Even seemingly small details, like the order in which ingredients are added or how long a product rests before packaging, can affect the final outcome.

Some production methods work in a small kitchen but don’t translate well to mass production. Common issues include:

  • Inconsistent texture or flavor across batches.
  • Extended production timelines due to inefficient scaling methods.
  • Packaging problems that affect final product shelf stability.

For example, many spice and salt blends absorb moisture differently in bulk packaging—which can affect product quality over time. Brands that don’t anticipate these issues often face unexpected delays or spoilage problems.

Scaling isn’t just about increasing quantity—it’s about ensuring production stability while optimizing cost and efficiency.


Bringing it all together

Developing a new food product isn’t just about having a great idea—it’s about execution.

Without a clear product development process, even the best ideas can fail due to supply chain issues, scalability challenges, or poor market positioning.

By following a structured approach—from market research and product ideation to ingredient sourcing, production scaling, and go-to-market execution—you give your innovative food product the best chance at success.

At Good Food Studio, we help food brands refine their product development strategy, optimize sourcing, and ensure seamless scaling from concept to product launch.

If you’re looking to develop a successful food product, let’s talk.

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