The CPG hype cycle is broken. Here’s how to fix it.

In the fast-paced world of consumer packaged goods (CPG), innovation has become one of the most overused—and misunderstood—terms in our vocabulary. Walking the halls of Expo West this year, the sheer scale of innovation on display is staggering. Every aisle promises a new solution to our food system’s woes—higher protein, added fiber, or the latest superfood infusion. Yet a troubling question persists: How much of this is actual food innovation, and how much is marketing dressed up as engineering?

The modern CPG landscape excels at generating hype but often fails to create lasting value. Brands appear overnight, fueled by venture capital and massive marketing spends, only to disappear a few years later. In fact, research suggests that 70% to 85% of new food and beverage CPG products fail within their first few years. From my perspective, this volatility frequently stems from a lack of true technological and operational know-how.

Many emerging brands rely almost entirely on co-manufacturing. While this approach lowers the barrier to entry, it also means these brands don’t own the underlying technology or research and development (R&D). Innovation in this context becomes cosmetic—tweaking formulas to chase trends—rather than structural: advancing the way we produce, consume, and think about food.

Walking Expo West, I saw dozens of brands promising incremental health benefits, yet most relied on the same co-manufactured base formula with minor modifications. In contrast, a handful of purpose-driven brands stood out by demonstrating real control over their ingredients and supply chains, producing minimally processed foods with measurable environmental benefits.  

When marketing drives the engine more than science, brands remain trapped in a cycle of hype that prioritizes what’s viral over what’s vital.

3 PRINCIPLES TO MOVE THE INDUSTRY FORWARD

If the food industry wants to move toward real, sustainable innovation, it must embrace three core principles:

1. Put R&D-led, sustainable innovation at the center: True innovation starts with R&D efforts grounded in sustainability—both environmental and economic. This means designing products and processes that reduce waste, protect biodiversity, and support the long-term resilience of the food system, while also creating durable business models. Owning key parts of the value chain can enable this, but the goal is not control for its own sake. It’s about building the technical and scientific expertise needed to create minimally processed, nutritionally sound foods that genuinely improve how people eat.

2. Purpose over pivot: U.S. retail and finance systems often reward novelty over endurance, leaving consumers confused, underserved, and pulled by headlines and politics toward options that aren’t always as healthy as the packaging suggests.

Sustainable innovation requires brands to stay rooted in their core purpose rather than chasing fleeting trends or hot ingredients. It means tackling systemic challenges—food waste, biodiversity, circularity, and the protein transition—rather than simply adding the next “+1” ingredient.

3. Streamline the value chain: Heavy intermediation adds cost, complexity, and inefficiency, ultimately hurting both consumers and producers. By supporting brands that combine purpose with technological expertise, the industry can create more direct, efficient pathways from sustainable production to the grocery bag. This evolution prioritizes long-term value over short-term shelf appeal.

FINAL THOUGHTS

The food industry stands at a crossroads. It can continue manufacturing hype—or it can invest in the R&D, supply chain integration, and technological rigor required to deliver real, accessible, and sustainable food. For brands aiming to thrive in the next decade, the future is not in the next viral trend. It’s in the lab, in the field, in the kitchen, and in a commitment to genuine innovation.

Carlo Stocco is the managing director of Andriani/Felicia North America.

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