Recipe and formula, those used interchangeably, are different from each other. A formula is useful for new food product development in a food & beverages manufacturing facility.
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How and why is a food product recipe converted to a formula.pdf
1. A COMPREHENSIVE
GUIDE OF THE COSTS
INVOLVED IN NEW
PRODUCT
DEVELOPMENT
An Academic presentation by
Dr. Nancy Agnes, Head, Technical Operations,
FoodResearchLab
Group: www.foodresearchlab.com
Email: info@foodresearchlab.com
2. Introduction
New product development is a deciding factor for the growth and sustainability of a business.
A systematic approach for a new product development contributes to overall success by increased market
share and higher revenue generation.
However, the entrepreneur must have an idea regarding the estimate of the cost since knowing the cost helps
the entrepreneur to determine the feasibility of the project and obtain funds for investment.
Developing a new product is a staged process, comprising of ideation, market research, ingredient research,
prototype development and shelf life studies.
Understanding the cost involved in each stage is crucial for effective cost management.
3. Cost of developing a new product :
The following section elaborates on the cost involved in new product development in Indian
Rupees (INR) at every stage, helpful for start-ups in India.
4. The primary objective of idea generation or ideation is to develop
numerous ideas that lays the foundation the strategy of new product
development.
The ideas are often generated by conducting an in-depth consumer
market research, which helps businesses obtain consumer insights, a
deciding factor which contributes to the success of a product.
The ideas are then screened for feasibility and potential for success,
leading to a proof of concept (POC).
The cost involved for ideation can range from ₹ 1, 00,000 to ₹ 2, 00,000,
and conducting market research can cost from ₹ 1, 50,000 to ₹ 2,
50,000.
01 IDEA GENERATION
5. 02 INGREDIENT RESEARCH
Ingredient research refers to the process of
selecting, analysing and choosing the
components or ingredients best suited for the
product.
The main objective of an ingredient research is
to find the best combination of ingredients that
meets the product specifications and comply
with the regulations and adhere to quality
standards.
The cost of ingredient research may vary from
₹ 1, 00,000 to ₹ 2, 00,000; depending on the
product and the ingredients.
6.
7. 03 PROTOTYPE DEVELOPMENT
A prototype can be defined as a replica of the
actual product. A prototype closely resembles
the actual product in terms of its sensory
profile.
Prototypes are important since they help the
start-ups to determine whether developing the
final product is feasible before investing
significant resources in developing the
product, thus making the process more
economical.
The cost of prototyping a product ranges from
₹ 2, 00,000 to ₹ 3, 00,000 for a product.
8. 04 SHELF LIFE STUDIES
Shelf life studies involve testing the product for
quality, safety and stability.
In a new product development, shelf life studies
are vital to ensure that the products remain
stable, safe and of a high quality when the
product is stored in consumers’ homes.
The cost for shelf life determination studies can
vary from ₹ 1, 00,000 to ₹ 2, 00,000; provided that
the recipe for the formulation is already
available.
9. CONSIDERATIONS :
The costs mentioned at each stage of product development are for a formulation made using
two to seven ingredients. The costs may be higher if the product is made using organic
ingredients.
The cost of conducting a clinical trial for formulating a nutraceutical or herbal product depends
on the available resources, study participants and adverse reactions.
Pilot manufacturing comprises of developing products at a small-scale. The cost required for
pilot manufacturing of a product depends on the Minimum Order Quantity (MOQ), cost of the raw
materials and logistics [1].
10. New product Development follows a systematic process, which helps entrepreneurs
to ensure that the product they have intended to formulate is feasible.
The basic steps involved in developing a new product include idea generation and
market research, ingredient research, prototype development and shelf life analysis.
The total cost for developing a new product can vary from ₹ 6, 50,000 to ₹ 11, 50,000.
The cost may be higher for a product made using organic ingredients. Effective cost
management is key to entrepreneurial success.
Conclusion
11. HOW GUIRES FRL GLOBAL CONTRACT R&D CAN HELP
We are a team of seasoned food scientists and technologists who offer new product
development services. Our range of product development services include:
Food Product Development,
Beverage Formulation,
Nutraceutical Formulation,
Cosmeceutical Product Development,
Herbal Formulation,
Microbiome Solutions,
Flavour Development and
Animal and Seafood Product Development.
12. We assist with product strategy, prototype, formulation, scale-up, sourcing, marketing and
reverse engineering.
Our comprehensive assistance ensures that the products have an excellent sensory profile,
align with consumer insights and adhere to the regulations, ensuring their success.
