Introduction

There is no denying the correlation that exists between innovation and consumer trends. Companies need

to fulfil the ever-increasing demands from consumers in order to remain profitable and ahead of the trends.

According to a report by Food and Drink Europe, the top innovation drivers within Europe can be broken

down into 5 categories, with pleasure/indulgence being ranked as the number one driver at a 47.8% share. 1

While health ranked as the second largest driver of innovation within Europe, it is ethics that has been identified as the most dynamic driver of them all, which can largely be attributed to the recent major spike in ecological concerns we have seen from consumers.

Food innovation trends

Drivers of innovation in Europe (%)

Source: Data and Trends report 2019, Food and Drink Europe 1

With the evolution of technology meaning that consumers have better access to information and are becoming more knowledgeable, their expectations are rising along with demands for more sustainable solutions, and meeting consumer needs has become increasingly more complex for manufacturers. The pace of innovation continues to increase at an alarming rate and appears to have no intention of slowing down. Innovations can be identified across the entire food value chain today, from plant breeding, cellular and acellular agriculture, processing methods, formulations, packaging and logistics, to retail.

Within this fast-changing landscape, it is often the smaller companies like startups that have the big, game-changing ideas. However, they usually lack the funds to explore further opportunities or scale up sufficiently. Conversely, larger food companies often have larger budgets for research and development, greater marketing expertise, greater brand recognition, and distribution channels at scale, which usually provide larger benefits from a consumer buy-in perspective. Their size, however, often slows them down in terms of reaction time to changing market trends and consumer demands. It is, therefore, in this intersection between cutting-edge innovation and big brands, that open innovation promises to deliver major benefits for both parties.

Larger corporations more often have the resources, funding and expertise needed by startups to provide optimal conditions for their innovations to flourish, and startups, on the other hand, can often lend a more agile and dynamic way of working to the larger organisations’ established systems and processes, without disrupting their day-to-day business activities.

What is required to ensure successful collaboration in an open innovation environment for both startups and multinationals? Below some of the key elements required for successful open innovation partnerships are explored from the perspective of both the startups and the big brands. Startups experience various hurdles, from funding, to collaboration models and regulatory complexities. Now in its fifth year, the Fi Global Startup Innovation Challenge offers some of the most promising of these innovators within food ingredients a platform to connect with the industry leaders who can help pave their way to success. Read on and discover the best innovations presented at the competition in 2019.

The 5th edition of the Startup Innovation Challenge will be held during Fi Europe 2020, taking place in Frankfurt from 1-3 December.

“Open innovation began as companies outsourced some of their development efforts due to increasing external capabilities or high mobility of skilled labour. But it quickly morphed into more of a collaborative approach where emerging technologies are sourced via universities, startups and other companies better suited to develop the technology and know-how.”

Rahul Shinde, Director Front End Innovation, Givaudan