Chapter 7: Development of New Tomato Products in a Very Consolidated Market

In the tomato processing industry, like any food industry, product and process development is considered a vital part of an astute business strategy. Tomato processing companies engage in new product development with the expectation of acquiring new customers, expanding into new geographic markets, growing profits, improving brand recognition, or expanding market share. The demand for new processed tomato products is growing for several reasons, including population growth, urbanization, ethnic diversity, rising incomes, and changing lifestyles. Failure to develop novel and improved tomato products makes processors compete solely on commodity sales price, which favours the companies with lowest production cost which in turn favours companies with larger production volumes, lower land and labour cost, and favourable climatic conditions. While these efficiencies remain the primary driver of the processing tomato industry in California, the purpose of this chapter is to discuss new product development in the tomato industry, including upcoming trends and potential opportunities.