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Turning global trade challenges into opportunities

While our food innovation ecosystem is in a healthy place, certain barriers persist. A panel of experts at Fi Europe shared their ideas and strategies for overcoming these, to fully unleash Europe’s potential.

Global trade is constantly exposed to disruption and uncertainty, caused by factors ranging from geopolitical tensions to protectionist policies. For ingredient suppliers, product manufacturers and brands, the ability to innovate and adapt has never been greater. This was the starting point for a panel discussion at Fi Europe’s innovation Hub on 2 December, entitled “Europe’s edge: Navigating trade shifts and turning challenges into opportunities.”

Possibilities in fostering innovation

Karin Verzijden, attorney-at-law at AXON Lawyers, noted that Europe is a harmonised market of 450 million consumers, with a robust regulatory framework.

“Some regulation might perhaps be too strict,” she said. “My feeling is that the European Commission has understood this and is in the process of simplifying things for innovative products. This would make it easier to hit the market moving forward.”

Antoine Baule, president of Odyssée Consult, said that European diversity was a strength in fostering innovation, with its dense network of universities, research centres, and companies.

“It is rewarding to see how universities collaborate with industry,” he said. “In France for example, we have Ferments du Future, a consortium of public universities and private companies, that is fostering research activity in fermentation.”

Zarina Kanji, managing director for UK and Europe at consulting firm WPIC, noted that European regulatory rigour was a source of trust in Asian markets, something that presents an opportunity for brand growth.

Meanwhile, Matthieu Vincent, partner and co-founder of DigitalFoodLab and startup expert, identified new innovation ecosystems emerging in Europe, highlighting cocoa and coffee alternatives.

“There is a strong innovative ecosystem, and this was not the case six or seven years ago,” he said.

Regulatory strengths and weaknesses

Nonetheless, challenges remain. Major players based in Europe are often more focused on rolling out global products than investing in new innovation, while multiple markets can create inefficiencies for start-ups.

“Many innovative start-ups feel they have to go to the US first,” said Baule. “In Europe, five years are required to get a novel food product approved, while in the US, this lasts two years.”

Baule pointed out that companies are also more likely to establish manufacturing hubs where their market is.

While the EU fantastic may be fantastic for research, the commercial benefits will be taken elsewhere unless we accelerate novel food procedures, he warned.

Verzijden suggested that current discussions around rules restricting “meaty” names for plant-based products missed the point, because the important thing was that consumers understood what an innovation was about.

On a more positive note, Kanji said that while there were legitimate concerns over EU regulations, these were also a source of trust across Asia.

“Brands are often able to easily access Asian markets, and the appetite for these brands is ever-growing,” she said.

Unlocking Europe’s potential

In terms of ways forward, Verzijden discussed working on a planned EU regulatory sandbox, where national initiatives can be shared with other member states.

“This is about creating a coalition of the willing and not having to wait for things to happen at the top EU level,” she said. A brief of the initiative has been produced, entitled “Closing the Food Innovation Gap”.

Vincent highlighted the possibility of global brands partnering with start-ups in order to refocus on long-term innovation. These companies need to experiment and relearn how to launch new products, he suggested. Companies should also focus on what is happening in China, where food innovation is most likely to be scaled up.

Baules said that segmentation among consumers in terms of their focus on sustainability, taste, and casual eating, etc. presented a big opportunity for ingredients suppliers.

“It would be good if such opportunities were concretised here in Europe,” he said. The precision fermentation of proteins for example promises to tap into consumer concerns of health and sustainability. “Let’s unlock this potential,” he added.

Kanji encouraged innovators to think of the problem their product address and to look for where the market is, while Verzijden hoped that simplification of the rules governing food innovation was on the cards. The European Commission understands that balance is needed to ensure competitiveness, she said.