AI Palette Raises $4.4M to Predict Consumer Trends

Accelerating Innovation in Packaged Goods with AI

The development of novel packaged foods and consumer products traditionally requires a substantial time commitment, often spanning several years, as companies dedicate resources to research, prototyping, and rigorous testing. However, in today’s rapidly evolving, socially-driven marketplace, consumers anticipate a much faster turnaround – expecting emerging trends to quickly appear on retail shelves.

Ai Palette: Real-Time Trend Identification

Founded in 2018, Ai Palette addresses this challenge by leveraging machine learning to enable companies to identify trends in real time and expedite the process of bringing retail-ready products to market, frequently within a matter of months. The company, serving clients such as Danone, Kellogg’s, Cargill, and Dole, recently announced the successful completion of an oversubscribed $4.4 million Series A funding round, co-led by pi Ventures and Exfinity Venture Partners.

Investment Details and Expansion Plans

Both pi Ventures and Exfinity Venture Partners will be joining Ai Palette’s board of directors. The funding round also saw participation from existing investors, including food tech venture firm AgFunder and Decacorn Capital, alongside new investor Anthill Ventures.

This latest investment brings Ai Palette’s total funding to $5.5 million, building upon a seed round secured in 2019.

Global Reach and Linguistic Capabilities

Ai Palette maintains its headquarters in Singapore, with a dedicated engineering center located in Bangalore. Initially focused on Southeast Asia, the company has broadened its customer base to encompass China, Japan, the United States, and Europe.

The platform currently supports 15 languages, a capability the company asserts is unmatched by any other AI-driven tool designed for predicting consumer packaged goods (CPG) trends.

The newly acquired funding will be strategically allocated to expand into additional markets and bolster its engineering and data science teams.

Founding and Expertise

Ai Palette was established in 2018 by Somsubhra GanChoudhuri, serving as chief executive officer, and Himanshu Upreti, the chief technology officer. Their collaboration originated through Entrepreneur First, a program focused on identifying and supporting potential founders.

Prior to founding Ai Palette, GanChoudhuri accumulated experience in sales and marketing at Givaudan, the world’s foremost manufacturer of fragrances and flavors. This role provided him with valuable insights into the intricacies of product innovation across a diverse range of consumer goods, from snacks and fast food to packaged products.

He observed a growing recognition among companies that the traditional two-year product innovation cycle was becoming inadequate to meet evolving consumer demands.

Upreti, a specialist in advanced machine learning and big data analysis, previously contributed his expertise to companies like Visa, where he developed models capable of processing petabytes of data.

Foresight Engine: Predicting Consumer Preferences

Ai Palette’s flagship product, Foresight Engine, meticulously tracks emerging trends in ingredients and flavors, analyzes the underlying reasons for their popularity, and forecasts the duration of consumer demand.

Furthermore, it identifies “white space opportunities” – areas where unmet consumer needs exist.

For instance, GanChoudhuri highlights how the COVID-19 pandemic has altered eating habits, with consumers now frequently enjoying health snacks up to six times daily while engaging with screens, creating opportunities for companies to introduce innovative product offerings.

Contextual Data and Trend Analysis

Upreti emphasizes that Foresight Engine delivers contextual information, detailing whether a food item is consumed on the go or in a café setting, and whether it is enjoyed socially or individually.

It also provides insights into trending items at events like children’s birthday parties, and utilizes images to illustrate product pairings and formats.

Data Sources and Accuracy

The platform aggregates data from diverse sources, including social media, search engines, blogs, recipes, menus, and proprietary company data.

“Data sets popular to each market are prioritized, like a local recipe or a food delivery app,” explains GanChoudhuri. “These datasets are tracked over time to establish growth trajectories with a high degree of confidence.”

Real-World Applications and Client Successes

Ai Palette’s technology has enabled brands to successfully launch new flavors, such as for potato chips or sodas, in specific countries.

The Foresight Engine allows them to identify not only rising trends but also those with the potential for sustained popularity, minimizing the risk of investing in products with limited shelf life.

Adapting to the Pandemic and Regional Preferences

Numerous Ai Palette clients have leveraged the platform to respond to evolving trends and consumer behaviors during the COVID-19 pandemic.

Increased interest in healthy foods and immunity-boosting products has been observed across many markets.

For example, demand for lemon and garlic has risen in Southeast Asia, while acerola and yerba mate are gaining traction in the United States.

Cultural Nuances in Food Preferences

However, GanChoudhuri notes that in China, taste remains the primary consideration, even surpassing health concerns, as consumers seek foods that evoke a sense of normalcy.

In India, there is a growing demand for products with extended shelf life, alongside a desire for interesting snacks to alleviate boredom during lockdowns, with Korean flavors like kimchi becoming increasingly popular.

Multilingual Support and Future Expansion

Ai Palette’s ability to process multiple languages is a key differentiator.

The platform currently supports English, simplified Mandarin, Japanese, Korean, Thai, Vietnamese, Bahasa Indonesian, Bahasa Melayu, Tagalog, Spanish, French, and German, with plans to incorporate additional languages as the company expands into new European countries, Mexico, Latin America, and the Middle East.