Recent criticism of the food industry has intensified, with headlines accusing manufacturers of “Greedflation”—continuing to raise prices despite broader inflation slowing down. While some acknowledge that there’s a lag effect between rising material costs and retail prices, the focus remains firmly on what many see as corporate profiteering. Little mention is made of the years when food inflation lagged behind general inflation.
Regardless of where you stand on this debate, one thing is clear: the pressure on food and drink brands to reduce costs while maintaining quality and consumer satisfaction has never been greater. However, achieving new cost savings is increasingly challenging. Many of the “quick wins” were exhausted long ago, and the expectation of further reductions can feel more like wishful thinking than a viable strategy.
At the same time, the market is shifting. Private-label brands continue to gain ground, offering consumers comparable quality at lower prices, often with the backing of major retailers. Consumer brand loyalty is also in decline, as shoppers become more price-conscious and open to alternatives.
Meanwhile, manufacturers are dealing with more than just raw material price increases. Supply chain disruptions, driven by geopolitical instability, have made it even harder to maintain cost efficiency. The impact of trade restrictions, transportation bottlenecks, and shifting global alliances means that many brands are not just paying more for ingredients but are also struggling with consistency in their supply chain. This adds another layer of complexity to cost management—one that makes traditional cost-cutting approaches even less effective.
Are You Looking in the Right Place?
Cost-saving efforts often focus on reformulating ingredients or adopting new production technologies. While these can yield incremental savings, they are slow to implement and—crucially—accessible to competitors as well. Instead, the real opportunity may lie elsewhere.
Consumer preference is often assumed to be about flavour first, followed by texture and other sensory attributes. However, in reality, what consumers truly respond to is how a product makes them feel. The sensory experience—its appearance, aroma, taste, texture—acts as a trigger for an emotional reaction, which ultimately determines whether they enjoy it or not.
By tracking consumers’ emotional responses and linking them back to their sensory experiences, brands can uncover surprising insights. Small, seemingly minor aspects of a product’s flavour, texture, or aroma can play an outsized role in driving preference—or, conversely, may have no impact at all.
Smart Cost Savings Without Compromising Consumer Satisfaction
Many brands assume that any change to a product’s formulation or manufacturing process will negatively impact consumer liking. But once you understand the specific interactions that create a positive emotional response, you can identify elements that can be altered without diminishing consumer preference.
For example:
• A costly ingredient or process that was long thought to be essential may turn out to have no real impact on consumer enjoyment.
• Subtle tweaks to the way flavour is delivered—or the balance between taste, texture, and aroma—may allow for more cost-effective alternatives.
• Some attributes may be critical for a trained sensory panel but go unnoticed by consumers in real-world conditions.
This level of understanding allows manufacturers to target cost reductions strategically, maintaining the sensory experience that consumers value most while eliminating unnecessary expenses.
Moving Forward in a Competitive Market
In an environment where private labels are thriving, brand loyalty is eroding, and supply chain volatility is adding new challenges, relying on traditional cost-cutting strategies is not enough. Brands need to dig deeper into what truly drives consumer preference—not just “flavour” in general, but the specific sensory and emotional cues that create an enjoyable experience.
By shifting the focus from broad assumptions to emotional insights, brands can unlock new ways to optimize products—delivering cost savings without compromising quality, consumer trust, or market position.
You can order my new book, The Shape of Taste, here:
Chris Lukehurst is a Consumer Psychologist and a Director at The Marketing Clinic:
Providing Clarity on the Psychological relationships between consumers and brands
