At ClearCut Analytics, we primarily work with CPG brands to identify promising areas of opportunity for innovation. Our eCommerce analytics and insights are key to our process, illuminating emerging changes in consumer behavior and product trends that are a likely source for business growth in the future.
Similar to CPG brands, the ingredient manufacturers/suppliers that service them also make innovation a strategic priority. In fact, many of the most popular products we see on the shelf today are actually a result of ingredient manufacturers pushing the trends to the market first. If a specific ingredient (and its benefits) has recently garnered popularity with consumers, CPG brands may deliberately choose to incorporate it into their products and “ride the wave” of its pre-existing demand and credibility to drive sales.
That all said, it is important to note that the most successful ingredient manufacturers today are not just following the science to bring new innovations to market. They are relying on diverse datasets to reap high rewards, including ClearCut’s eCommerce & Amazon analytics. Here are some of the ways that ingredient manufacturers are leveraging our data to make more informed decisions, drive business, and continue to be trailblazers in their space:
Identify new ingredient opportunities
As consumer behavior and preferences evolve, it is crucial for ingredient manufacturers to flag any early indicators that tip them off of that change. For example, manufacturers may want to know:
- Is black seed oil the next opportunity?
- Is ashwagandha really heating up or is it just hype?
- Is elderberry here to stay or is the growth only temporary?
- Are consumers shifting to powder forms of magnesium citrate versus tablets of magnesium glycinate?
ClearCut’s clients turn to our eCommerce analytics to get answers to these granular questions and uncover new ingredient opportunities in a systematic and validated way. Our data is also particularly valuable for ingredient manufacturers as it provides views into consumer trends up to two years before they appear in brick-and-mortar retail stores– which ultimately gives them the runaway to react and make swift progress with their research and development efforts before it’s too late.
Identify the size of the category they compete in and track competitors
Clients additionally rely on our data to understand “the size of the prize,” or the size and growth rate of the categories they sell into. Specifically, ingredient manufacturers may want to know:
- Are we investing in a large enough category to generate the right level of returns?
- Is the category expected to increase or decrease in size?
- Are there any proprietary ingredients being sold by our competitors with a material presence? If so, is there space for us to enter and capture market share?
Successful ingredient manufacturers know that understanding the market is more important than ever for a sound growth strategy. Plus, there is no excuse to NOT understand these dynamics when the data is readily available and the investment is relatively minimal.
Find new brands to target
A third way that ingredient manufacturers leverage our data is to identify strong sales leads. They may turn to the data to ask:
- What are the top-selling brands we can sell our ingredients to?
- Are there any emerging, high-growth brands that we should also target?
- What flavors, delivery methods, average price points, and other product attributes are growing within the category we sell? How can we leverage this information in our sales strategy?
Our eCommerce data helps paint this picture, overall making the sales process more efficient, effective, and informed for ingredient manufacturers.
Interested in learning more about our eCommerce analytics and how ingredient manufacturers are benefiting? Contact us here for a walkthrough of our Insights Platform today!