Big Food reformulation – summary
- Regulation is primary reformulation catalyst, enabling compliance and cross market expansion
- Consumers demand healthier ingredients, and novel flavours and textures, driving recipe innovation
- Supply chain volatility forces recipe changes to manage costs availability
- Faster adaptable companies gain market share through quicker reformulation execution
- Execution risks include consistency, taste, texture and trust, requiring rigorous testing
Big Food is in full reformulation mode, and the scale of change goes far beyond individual product lines.
What once involved incremental tweaks is now a sector-wide reset, reshaping sourcing strategies, processing technologies, and even brand positioning, across global markets.
So, what’s behind the switch-up? And what does it mean for the future of food and beverage?
Big Food reformulates
Right now, the biggest driver of reformulation is “regulatory change,“ says Renee Leber, food science and technical services manager at the Institute of Food Technologists (IFT). This is pushing manufacturers to rethink everything from sugar, salt and fat reduction to ingredient substitutions and additive removals, with global players like Nestlé, PepsiCo, Unilever and Danone all reformulating products in response to tightening nutrition targets and ingredient restrictions across key markets.
Another major influence is changing consumer preference, with shoppers seeking exciting new ingredients, putting greater emphasis on health and nutrition, and showing a growing appetite for novelty – trends reflected in launches such as Coca‑Cola’s Zero Sugar reformulations, Nestlé’s reduced‑sugar KitKats, and PepsiCo’s flavour‑forward Doritos.
Sustainability considerations are also playing a growing role. Reformulation is increasingly used to reduce environmental impact, whether by switching to lower‑carbon ingredients, improving sourcing credentials, or supporting broader ESG commitments – Unilever has adjusted recipes across lines like Knorr to incorporate more sustainably sourced vegetables and plant proteins, and Danone’s clean‑label yoghurt ranges improve traceability and transparency.
And finally, reformulation can and most definitely is being shaped by supply chain pressures – from disruptions in ingredient availability to ongoing cost volatility. In response, companies are reworking recipes to manage risk and maintain supply, as seen in Mars adjusting formulations across some chocolate brands to cope with cocoa price fluctuations, or Kellogg’s reformulating cereals to manage grain availability and costs while keeping products on shelf.
Reformulation’s winners and losers
Reformulation is no longer just a technical exercise, but a strategic capability that influences time to market, portfolio performance and long‑term relevance.
“The current wave of reformulation is reshaping market share by favouring companies that can move faster and adapt more effectively,” says IFT’s Leber. “While many factors influence competitiveness, companies that respond quickly to shifting consumer preferences and evolving regulations are better positioned to bring products to market sooner.”
What’s more, as the pace of change accelerates, companies that struggle to keep-up risk falling even further behind.
And, it’s not just about the speed of the reformulation itself, it’s about the ability to quickly identify where changes are needed. This, says Leber, enables confident and effective portfolio restructuring.
Retailers also play a growing role in determining winners and losers. From tighter own‑label nutrition standards to sustainability targets and the risk of delisting, retailer requirements are increasingly shaping how and when products are reformulated, particularly in Europe, where retailer influence is especially strong.
Competitive edge
Companies are turning reformulation into a competitive advantage, responding rapidly to evolving consumer expectations and regulations. Brands must move quickly to meet new demands without sacrificing the attributes consumers know and trust.
In some cases, this has led companies to introduce new products or expand portfolios with additional lines, most recently through the emergence of brands and products developed specifically for GLP‑1 patients.
“Launching new brands allows companies to signal commitment to these evolving behaviours without disrupting core products,” says Leber. “In other cases, particularly when regulatory requirements change, companies focus on reformulating existing products.”
At the same time, advances in food science and technology are helping to unlock these strategies. Improvements in ingredient functionality, sensory science and formulation tools are enabling manufacturers to test faster, predict outcomes more accurately and accelerate time to market.
Together, these strategies allow companies to adapt more quickly to consumer scrutiny, regulatory shifts and evolving expectations around ingredients and health.
Reformulation challenges
While reformulation is strategically important for manufacturers, success ultimately hinges on execution.
One of the biggest challenges manufacturers face in reformulation, says Leber, is maintaining product consistency. “Consumers expect the same experience every time they purchase a product so when reformulation occurs companies must ensure that the product continues to look, feel and taste the same.”
And this isn’t always easy. Even small changes to ingredients or processing methods can have a knock‑on effect on flavour release, mouthfeel, appearance or shelf life, particularly in well‑established products with loyal followings.
That risk was recently, and very publicly exposed by The Hershey Company, as changes to the chocolate in certain products led to backlash over perceived declines in flavour and quality – the company has since announced it’s to return to real chocolate.
Labelling and communication add another layer of complexity. Decisions around front‑of‑pack claims, clean‑label positioning and whether, or how, to communicate formulation changes can significantly influence consumer perception and acceptance.
As a result, manufacturers must carefully balance nutritional or cost‑driven improvements with rigorous testing and validation to ensure reformulated products continue to meet, or ideally exceed, consumer expectations. Because, as Leber explains, even small changes can lead to dissatisfaction and loss of trust. Just look at Cadbury’s Fruitier & Nuttier range – launched as an HFSS‑compliant option, it failed to win over consumers and was discontinued following weak sales.
The future of reformulation
Reformulation has shifted from a reactive measure to an ongoing source of opportunity for food and beverage manufacturers.
As regulations change, consumer expectations evolve, and supply chains remain under pressure, companies that can adapt formulations quickly, while protecting quality and brand trust, are opening the door to new markets, new consumers and renewed relevance.
For manufacturers, the opportunity lies in embedding reformulation into everyday decision‑making, using it to innovate at pace, strengthen portfolios and respond to increasingly fragmented regional, retail and consumer demands.
