Top 5 Market Expansion Strategies for Food Manufacturers

When you’re in the food and beverage industry, knowing where to grow can be tricky. With over 740,000 restaurants in the U.S., competition is fierce.

How do you know which markets are the best fit for your products? That’s where a solid market expansion strategy comes into play.

In this article, we’ll dive into how market intelligence is critical in shaping strategic direction for food and beverage manufacturers. You’ll learn market expansion strategies for food manufacturers, identify growth opportunities, and fine-tune your strategy to meet the demands of a competitive industry.

Why Food and Beverage Manufacturers Need a Specialised Market Expansion Strategy?

Let’s say you’re a food manufacturer looking to expand your product line into new markets. Without a specialized strategy, you might target a general area where you think there’s potential, but you’re taking a shot in the dark.

You may have heard many restaurants are opening in a particular city, so you decide to focus there. But are those restaurants aligned with the type of product you’re offering? Do they match your price point, distribution capabilities, or product’s unique qualities? Probably not.

Now, compare that to using specialized market expansion strategies for food manufacturers, where you have precise data and insights into which markets are growing in specific niches.

For example, your product is plant-based, and market intelligence shows that cities like Austin, Portland, and Toronto have more food establishments selling plant-based options.

You’d also know which types of restaurants—whether fast-casual, fine dining or even meal kit services—are sourcing more plant-based items. This precision targeting ensures your products are being introduced where they’re most likely to succeed.

Instead of chasing vague opportunities, a specialized market expansion strategy ensures that you focus on markets and restaurant types that align with your product, brand, and business goals.

Top 5 Market Expansion Strategies for Food Manufacturers

Let’s break down the food marketing strategies food manufacturers can use to expand their reach in the most effective way possible.

Focus on Regional Trends

Not every product will perform the same way in every part of the country. What’s popular in California might not resonate with consumers in Texas, and vice versa.

A market intelligence platform helps food manufacturers identify these trends by analyzing data from thousands of restaurants and food establishments in different states.

For example, a market intelligence platform’s restaurant database might reveal that California has a high demand for organic and plant-based foods due to many health-conscious restaurants and consumers. Meanwhile, Texas may have a stronger market for barbecue sauces and meat products, aligning with the state’s large number of BBQ-focused establishments.

Diversify Your Product Line

Expanding your product line is a key way to tap into new markets and meet the evolving needs of food establishments.

Here’s how to do it:

• Use Market Data to Identify Gaps: Food and beverage market research can help you see where there’s a demand for products you’re not currently offering. For example, if data shows that restaurants in your target market add gluten-free options to their menus, you could develop a gluten-free version of your existing product. By identifying gaps, you can create products that fulfill unmet needs.
• Adapt to Consumer Preferences: Monitor consumer behavior. As more customers seek healthier alternatives, introducing low-sodium or reduced-sugar versions of your products can attract health-conscious restaurants. Market data will help you understand which dietary trends are gaining traction.
• Test New Products in Key Markets: Start small by testing new products in regions with strong demand. For example, if plant-based items are trending in a certain city, launching a small-scale rollout allows you to gather feedback and make adjustments before a full-scale launch.

Explore International Markets

Different countries have unique food cultures, preferences, and needs, which could present untapped potential for your products. If one region experiences a slowdown, having a presence in another market can keep your revenue stream steady.

Conduct thorough research using a market intelligence platform like Brizo FoodMetrics to explore international markets effectively. This allows you to identify countries with growing demand for products similar to yours. For example, you might discover that your snack food line has strong potential in the U.K.

Additionally, analyzing the regulatory requirements, supply chain logistics, and local competition will help you avoid pitfalls and enter the market smoothly.

Target Emerging Restaurant Categories

As dining trends evolve, new types of restaurants are popping up, and many of them have unique sourcing needs. By aligning your food products with these growing categories, you can position your business to supply high-demand items to rising restaurants.

Here are some of the emerging restaurant categories you should consider:

• Ghost Kitchens
• Plant-Based and Vegan Restaurants
• Health-conscious and Functional Food Restaurants
• Farm-to-Table Establishments
• Meal Prep and Delivery Services
• Fast-Casual Dining

Utilize Co-Branding Opportunities

Co-branding involves partnering with another food brand to create a product or marketing campaign that benefits both parties. For food manufacturers, this can be a powerful F&B strategy plan to tap into new audiences and markets by leveraging the strength of a well-known partner.

Here’s how to do it:

1. Find Complementary Brands: Look for brands whose products align with yours but don’t directly compete. For example, if you manufacture sauces, teaming up with a popular pasta brand can enhance your market visibility.
2. Create Joint Promotions: Work with your co-branding partner to launch promotions or special offers on social media platforms and through influencer marketing (food bloggers). This will increase your reach and create excitement and buzz around your product.
3. Collaborate on Product Development: You can even co-create a new product that brings together the best of both brands, like a special meal kit featuring ingredients from both food companies. This helps both brands expand their potential customer base while offering something fresh.

Conclusion

When you’ve got the right data, you can make decisions that actually move the needle. Market intelligence makes the difference between guessing and knowing where to grow.

At Brizo FoodMetrics, we offer insights from over 2.1 million food establishments, covering everything from menu trends to technology adoption and even ambiance filters.

Whether you’re trying to find the next big market for your products or understand where your competitors are making moves, we have the data to back it up. Ready to make your next market expansion decision with confidence? Let’s get started with Brizo FoodMetrics.