The Innovation Gap: How Big CPG Can Transform Consumer Expectations

The Consumer Packaged Goods (CPG) industry is at a crossroads. While it may seem like grocery store shelves are teeming with endless "new" products, we at Chew have been calling out what we see as The Innovation Gap — a chasm between what consumers are craving and what brands are delivering. This gap is not just a challenge; it’s the biggest opportunity the industry has seen in decades. For those bold enough to act quickly, the rewards could be monumental.

A Flood of "Fake" Innovation

Walk into any store, and you’ll see it: aisles lined with products screaming about "new flavors" or "limited editions." But scratch beneath the surface, and you’ll notice that most of these offerings are flavor extensions, not true innovation. Think of a cereal with a slightly different fruit blend or sparkling water in a "seasonal" flavor. These changes might offer temporary excitement for brands, but they fail to deliver the groundbreaking ideas consumers are hungry for.

This approach benefits the brands, not the consumer. It’s a tactic to keep shelves looking fresh while masking a lack of real progress in product development. Flavor extensions are the equivalent of changing the paint on the walls of a house with a crumbling foundation. They momentarily distract, but they don’t inspire loyalty, drive sustained excitement, or build brand love.

What Consumers Want: True Disruption

Consumers are desperate for products that surprise, delight, and solve problems meaningfully. They want:

• Elevated Experiences: Food and beverages that feel indulgent and exciting, inspired by world-class culinary techniques or global traditions.
• Science-Backed Functional Benefits: Products that go beyond basic nutrition to offer functional benefits like gut health, energy support, or stress relief, rooted in credible science.
• Transparency and Purpose: Authenticity, clean ingredients, and a compelling brand mission that aligns with their values.

Yet, what they often get is the same thing repackaged. The result? Disillusionment and, worse, declining trust in the industry’s ability to deliver anything truly novel.

The Bold Opportunity for Big CPG and New Entrants

The Innovation Gap isn’t just a problem—it’s a goldmine for those brave enough to close it. Consumers are giving the industry a loud and clear mandate: Do better. Here are the pathways to creating products that resonate deeply and build a lasting competitive edge:

1. Culinary-Driven Excellence

Think of the culinary world as the untapped treasure chest for Big CPG. Techniques like fermentation, sous-vide cooking, or culinary-grade spice blending can elevate even the simplest products into something extraordinary. Why settle for a basic BBQ chip when you can deliver a chip inspired by slow-smoked brisket perfected by a pitmaster? Why produce plain protein bars when you can create bars inspired by Michelin-starred desserts?

True culinary innovation is about craftsmanship, global inspiration, and respecting the consumer’s desire for something exceptional. By bringing world-class culinary thinking into product development, brands can stop playing defense and start creating.

2. Science Meets Imagination

Functional foods and beverages are gaining popularity, but many feel clinical or uninspired. Big CPG has an opportunity to combine bold science with bold imagination. For example:

• Protein innovation that goes beyond plant-based and into hybrid solutions like mycoprotein or lab-grown alternatives.
• Snacks engineered for purpose, like snacks infused with adaptogens or snacks that deliver not only on minimal ingredient lines an minimal negative macro impact, but products that deliver on both extraordinary taste AND some other higher purpose.

By leaning into rigorous, credible science and pairing it with creative product design, brands can create a new category of products that don’t just promise — but deliver.

3. Building Branded Love and Loyalty

Consumers want brands they can love, not ones that feel interchangeable. Creating brand love requires bravery. It means having a purpose that extends beyond the transaction and into building a tribe of consumers who buy your products and evangelize them.

Think Patagonia’s relentless commitment to sustainability or Apple’s obsession with design. In the food world, the opportunity is the same: to craft brands that represent bold values, unforgettable storytelling, and products that people cannot live without.

Who Will Seize the Moment?

Closing The Innovation Gap will require boldness, speed, and a willingness to take risks. For Big CPG, this means breaking free from the chains of incrementalism. For new entrants, it’s about moving fast to outmaneuver legacy players with agility and creativity.

This is the moment to redefine what the CPG industry stands for. The brands that act now will not only survive but thrive as pioneers of a new wave of consumer-first, truly innovative products.

At Chew, this moment is ripe with potential for those who dare to think differently. Are you ready to be bold?