Of course, price matters. Shoppers are keeping a close eye on their budgets, and value will always be a factor, But chasing price alone is a short-term play – a race to the bottom. And for emerging brands, that strategy isn’t just unsustainable, it’s a dead end.
The brands making real impact today – and the ones that will win tomorrow – are the ones brave enough to do things differently. They’re reimagining the market, not just adjusting to it.
Why Innovation Can’t Wait
Even as inflation starts to ease, the numbers paint a sobering picture. A 2025 Bain & Company report showed that 75% of global CPG growth came from price increases, not from genuine consumer demand.; meaning the industry isn’t expanding, it’s reshuffling.
Private label brands are growing faster than their branded counterparts and now make up 36% of FMCG sales in Australia. Meanwhile, a third of CPG executives are pointing to innovation as the single biggest lever for future growth.
In other words, relying on reputation or name recognition isn’t enough anymore. Innovation is no longer a ‘nice to have’ – it’s the thing that separates brands that survive (or don’t), from the ones that thrive.
Innovation Isn’t a Trend – It’s the Terrain
In food and drink, innovation isn’t just about creating new flavours or line extensions. It’s about asking bigger questions. What needs aren’t being met? What habits are shifting? What new expectations are emerging?
Because the truth is, what seems radical today often becomes tomorrow’s baseline. Plant-based alternatives, functional beverages, clean ingredient lists, these were once niche. Now they’re front and centre in supermarkets, fridges and cafe menus.
That shift didn’t happen by chance. It happened because brave brands took a leap.
What It Actually Takes to Lead
Innovation isn’t a one-off brainstorm or a single product launch. It’s a mindset. A system. A commitment to curiosity and constant evolution.
It takes creating an internal culture where new ideas are welcomed, not shut down. It means putting real investment into research and development, not just marketing gloss. It requires listening deeply to consumers, partnering with external experts when you need to, and embracing speed and agility without sacrificing quality.
Brands that lead in innovation are often the ones that are willing to make uncomfortable decisions. The ones choosing long-term value over short-term gains. They stay open to failure because they know that’s where learning happens. And they keep one eye on global movements while staying rooted in local relevance.
It’s not luck, it’s structure, discipline and courage.
Real-World Proof: When Innovation Goes Mainstream
Think of oat milk. What started as a niche product turned into a supermarket staple because brands like Oatly recognised a shift in how people wanted to eat. It wasn’t just about creating a dairy alternative, it was about tapping into a movement: plant-based diets, gut health, sustainability. And they didn’t just create a product, they built a brand with personality, humour and heart.
Or Beyond Meat. A burger that looks and tastes like beef, minus the cow. It pushed past the stereotypes of what plant-based food had to be and spoke to a new kind of consumer, someone curious, not necessarily vegan, but open to better choices.
Protein powder used to scream “gym bro” – until GYM BOD turned it into delicious sweet treats that satisfy the sugar craving, but are a better-for-you option. They nailed the craving for simple swaps, built a brand with attitude, and took it from a rural garage to supermarket shelves nationally and internationally.
Listen to Cian and Courtney’s journey here.
And then there’s kombucha. Once relegated to farmers markets and health food stores, brands like Remedy Drinks turned it into a functional soft drink loved by wellness-minded shoppers and busy families alike.
None of these products exploded because they were the cheapest. They succeeded because they were meaningful, timely, and a bit brave.
The Cost of Not Innovating
There’s a real risk in playing it safe. Fewer challenger brands means fewer choices for consumers. That can look like a shelf full of sameness – no variety in flavour, fewer allergen-friendly or dietary-specific options, and a shrinking pool of sustainable, values-driven products.
It also means reduced accountability. With less competition, there’s less pressure on quality, transparency, or continual improvement. And let’s not forget the local impact; emerging brands often manufacture locally, supporting jobs, regional suppliers, and transport networks that keep communities strong.
When innovation stalls, creativity does too. And when creativity dries up, entire categories stop evolving. That’s not just a commercial risk, it’s a cultural one – and it’s not relevant just for food and drink brands, but all of CPG.
Now’s the Moment
If you’re building a CPG brand in Australia, this is your moment to step forward. The market is ripe for new ideas and new leaders. Not just imitators, but originators. You don’t need to be the biggest, but you do need to be bold.
And if you’re a retailer, distributor or investor, this is the time to back the brands that are willing to rethink the rules. The ones who are listening, testing, iterating and creating products with real purpose.
Because the future of CPG won’t belong to those playing it safe. It will belong to the innovators – the ones rewriting what’s possible and building what’s next.