Beyond Trends: Why Product Reformulation Is Becoming a Strategic Imperative
Product reformulation is no longer just a response to fleeting consumer trends. It's a strategic necessity and an opportunity to lead. From regulatory shifts to supply volatility and rising ingredient costs, food and beverage companies are under pressure to rethink their formulations not only for performance, but for resilience.
At Bright Green Partners, we recently hosted a webinar on this very topic. Joined by pioneering ingredient companies and regulatory experts, we explored why reformulation is moving up the corporate agenda and how businesses can do it right.
The Evolving Drivers of Product Reformulation
Once dominated by health and wellness claims, reformulation is now shaped by a broader set of forces, mainly consumer demands and the industry itself:
- Shifting dietary trends and consumer preferences: There is growing demand for clean-label products, concern over ultra-processed foods (UPFs), and a push for functional nutrition, from low-sugar and salt to high-protein offerings.
- Sustainability expectations: Consumers and corporate stakeholders alike are prioritizing sustainable and ethical sourcing, especially for high-impact ingredients like cocoa, coffee, and palm oil.
- Pricing considerations: Companies must walk a fine line between price-sensitive consumers and those willing to pay a premium for healthier, more sustainable products.
- Supply chain instability: Climate events and geopolitical shocks are driving global ingredient shortages, from eggs and sugar to cocoa and beyond.
- Regulatory pressure: Governments are introducing new rules on sugar content, front-of-pack labelling, ingredient safety, and sourcing traceability.
- Cost volatility: Prices of key ingredients are fluctuating wildly. Just consider the egg price crisis during the avian flu outbreak or recent cocoa price spikes.
These converging factors are not just creating urgency. They're also creating opportunity. Both tech startups and large corporations are embracing this opportunity and reformulating in key areas like sugar reduction, natural sweetener replacements, sodium and fat cuts in recipes, as well as innovation in next generation tropical crops such as chocolate or coffee.
It goes without saying that emerging players are striving to replicate the functionality elements of traditional recipes and products - such as taste, nutrition, and sustainability all at once. But it’s rarely a plug-and-play solution these efforts require thoughtful reformulation across the entire product lifecycle. Both tech start-ups and corporates innovate to reformulate products
Regulatory and Technical Realities of Product Reformulation
One of the standout voices in our webinar was Mathilde Do Chi, a food law and regulatory expert and member of our BGP Expert Network. She unpacked three essential pillars of reformulation that often trip up companies: food safety, consumer acceptance, and technical constraints.
Food Safety Isn't One-Size-Fits-All
Reformulating with next generation ingredients often requires breaking with convention. For example, using traditional safety parameters for conventional foods such as pasteurization for cheese can backfire in the case of fungi-based cheese as this approach results in a product unsafe for consumption!
Allergenicity and cross-contamination is also a factor that requires closer examination. Global regulations vary: while sesame is a mandatory allergen in the EU, passionfruit is not. More importantly, newer proteins (like pea) may trigger allergies similar to soy due to cross-reactivity, which is not always addressed in regulatory frameworks.
Consumer Acceptance Is Local
Reformulation doesn’t stop at the lab. It’s about consumer trust. Texture expectations, terminology, and even labeling must be adapted by market. For instance, tofu preferences vary dramatically between Europe and Asia. Likewise, calling a product "mycoprotein" may resonate in some regions but raise eyebrows in others.
Religious and ethical considerations also matter. Third-party certifications (like halal or kosher) might be voluntary in one market but essential in another.
Trade, Tax, and Technical Constraints
Products that don’t fit into conventional categories can get lumped into “Other” under the HS code system, often leading to unfavorable tax rates and complicating global trade.
Moreover, scale-up comes with its own barriers. Trying to produce next generation products using processes designed for conventional foods rarely works. Reformulation often requires new manufacturing protocols altogether.
Regulatory Considerations
While food is a global necessity, the regulatory frameworks governing it are anything but unified. Supranational bodies like the EU offer relatively streamlined processes to access the market of all 27 member states. In contrast, regions like ASEAN, are making progress toward harmonization but still operate largely on a case-by-case basis. While Singapore is the clear leader with innovation-friendly efforts, other countries still face regulatory gaps that make scaling reformulated products more complex. For companies reformulating for global markets, this patchwork system means regulatory strategy must be built in from day one.
Real-World Product Reformulation in Action
While the barriers to reformulation are real, ranging from regulatory complexity to functionality trade-offs, a growing number of innovators are showing what's possible. During our recent webinar, several companies shared how they’re turning these challenges into opportunities through smart ingredient development, technical collaboration, and market-savvy formulation strategies.
Maia Foods, represented by Chief Innovation Officer Dr. Sean Lacoursiere, is a Canadian startup producing mycelium-based protein, developed a textured protein blend with pea that outperformed soy in both taste and functionality. Crucially, it eliminated the need for a 24-hour hydration step, reducing time and operational cost for food manufacturers.
Amai Proteins, led by CEO Dr. Ilan Samish, has developed the world’s most stable sweet protein, enabling up to 70% sugar reduction in applications like ketchup. Their reformulation approach focused not only on sweetness, but also on maintaining bulking and mouthfeel, often using dietary fiber or natural stabilizers.
California Cultured, represented by CEO Alan Perlstein, is pioneering cell-cultured cocoa and coffee. Their low-bitter and alkaloid-free cocoa variants are being blended into existing chocolate products to address sustainability concerns, regulatory risk, and ingredient consistency. Additionally they can unlock the pet chocolate market as their cocoa is safe for pet consumption, due to the absence of caffeine and theobromine.
Griffith Foods, with insights from Managing Director Alternative Proteins Michael Snodgrass, is a global ingredient solutions provider, has launched an Alternative Proteins Portfolio to help food manufacturers reformulate with speed and flexibility. The portfolio includes seasonings, sauces, binders, and coatings tailored for plant-based and hybrid protein applications. Designed to be modular and customizable, these solutions reduce R&D time while maintaining taste, texture, and scalability.
These cases all point to a broader shift: reformulation as a platform for collaboration between upstream innovators and downstream brands.
What Success Requires
Our expert panelists shared the key considerations for companies to reformulate effectively:
- Early regulatory involvement: Don’t wait until the end of product development to consult regulatory experts. From novel ingredient approval to GRAS status to allergen declarations, engaging early can prevent costly delays.
- A hybrid mindset: Full replacement isn't always feasible. Many successful product reformulations start by blending conventional ingredients with next-gen inputs to gradually improve functionality, resilience, and perception.
- A broader cost lens: Focus on cost-in-use, not just cost-per-kilo. Ingredients that streamline production or reduce other inputs can drive net savings even if their unit price is higher.
Contextual consumer insights: What works in the Netherlands may not work in China. Local taste preferences, ingredient perceptions, and labeling standards should guide reformulation efforts from the outset.
Looking Ahead
Reformulation is becoming a core strategy for future-fit food businesses. Not only to meet changing consumer and regulatory expectations, but to manage ingredient risk, stabilize pricing, and unlock new sources of value.
It requires new ways of working and can be complex. But if done right, reformulation is more than a technical process - it’s a strategic opportunity to lead the next era of food innovation.
To learn more about how Bright Green Partners helps companies with reformulation, strategy, and innovation partnerships, get in touch with our team.
Get access to the full webinar recording here.
Work with Bright Green Partners
Whether you need help understanding the business case of your next-gen ingredient, scouting of reformulation technologies or a due diligence on emerging technologies. We are your source for trusted AgriFood Tech expert insights & consulting, so you can make informed decisions. Schedule a call with our Managing Partner, Floor Buitelaar, to discuss how we can support you with expert-driven insights
