Identifying Your “White Space Opportunity”: Untapped Value You Can Capitalize On

When we think of the future, we often imagine things that are somehow both far-fetched and obvious: flying cars, teleportation, colonies on Mars.

And yet, not a day goes by without an opportunity for CPG companies to create the future—and probably not the future people are expecting. It comes in little increments: collagen-infused, prebiotic sodas; solid shampoo bars that replace the plastic from multiple bottles; strawberry-flavored, keto-friendly whipped cream.

We’ve seen a plethora of creative (and tasty) vegan and non-dairy alternatives dominate store shelves, making even meat and dairy lovers curious. Pretty soon, lab-grown meat might spawn a whole new section in your local grocery store, with endless possibilities. (How about some wooly mammoth meatballs? Extinction isn’t necessarily a barrier.)

These are all examples of white space opportunities, and they’re the key to landing the next breakout product people never knew they couldn’t live without. If you successfully capture a white space opportunity, you’ll discover new ways to deliver value and see your share of category soar. 

What is a white space opportunity?

A white space opportunity is an unmet market need or consumer desire that a yet-to-be-invented product can fill. In a similar vein, underserved consumer populations can also be considered white space opportunities. Subcategories include:

• Unmet consumer needs, such as gluten-free pastries.
• Untapped markets or demographics, such as the so-called “silver economy” or the “menopause market.”
• Cultural shifts that impact purchasing preferences, like sustainability and veganism.
• Large-scale sociopolitical events that forcefully change people’s purchasing habits, like the dramatic uptick in canned cocktail sales and flavors during the pandemic.
• New technological capabilities or scientific discoveries that immediately give rise to new products, like retinol for skincare.  
• Technological developments prompting new cultural trends that in turn impact purchasing habits, such as selfie culture (courtesy of Instagram) and the handmade, one-of-a-kind products trend (made mainstream by Etsy).

White space opportunities are incredible discoveries for innovation and growth, helping you surge ahead of competition, expand your market share, and potentially become a new category leader. On the flipside, failing to meaningfully differentiate your product means risks losing to competitors who beat you to the market. 

How do you identify a white space opportunity in the CPG industry?

Identifying hidden market opportunities does NOT mean engaging in unstructured improvisation or “throwing things at the wall to see what sticks.” It’s about investigating those actual consumer needs and desires that are yet to get on people’s radar. Chasing novelty for its own sake might get you a few curious buyers, but the only way to stay on the shelves is to solve a real customer need.

The tricky thing is that consumers often won’t tell you about these needs, since they don’t realize they have them. White space analysis is, in many ways, a case of unknown unknowns. People are so used to the way things are, they can hardly imagine being obsessed with something that doesn’t exist yet.  

This is why detailed, ethnographic research is critical to white space analysis. Using a strategy like in-home usage testing (IHUT), you can get a nuanced understanding of how people use your category of products and what they feel may be missing. For example, when testing your sunscreen, do they mention wishing it were tinted to match their skin tone or that it contained skin-boosting ingredients like hyaluronic acid?

Behavioral analysis is another important strategy. When viewing a video of someone trying your product in their home, you might notice them trying to work around certain sources of frustration. They might not verbalize it, but their intense effort to get rid of the sunscreen’s white haze on their face speaks volumes.

Finally, niche testing can help you locate those untapped markets whose needs and desires many companies simply haven’t considered. For example, people with unique hobbies and interests may provide hidden market opportunities with minimal competition.

Validating potential white space opportunities with consumer insights

You’ve identified an opportunity that you could fill with a great product—but will people actually buy it?

Sometimes, solving a need isn’t enough. People might have attitudes (whether valid or misplaced) around the innovation that could make them reluctant to purchase. Take the lab-grown meat example. People might love the idea of having a steak that didn’t require slaughtering a cow, but the implications of a future where endless meat varieties are devised with gene editing and then grown in labs may strike them as dystopian.

You just never know, so your best bet is asking the consumers themselves. Incorporating psychographic research into your testing will help you better understand the types of attitudes your product might inspire when people see it on the shelves. How does it resonate with their goals, their values, and their concerns about where society is headed?

Strategies for capitalizing on white space opportunities—before the competition!

It’s highly likely that you’re not the only person who noticed a hidden market opportunity, so time is of the essence.

Obviously, turning a nascent idea into a fully-fledged product that consumers love isn’t easy. The best thing you can do is test your concepts early and often. This necessitates a testing strategy that offers a fast turnaround time while also ensuring that feedback is authentic and comprehensive.

If you’re targeting an untapped market or demographic, be sure to test with that demographic, including niche segments within it. Highlight’s testing audience can be segmented into ultra-niche groups, giving you a very nuanced understanding of your customer base.

Cross-functional collaboration is key to making your category-defining product launch a success. You’ll need to make sure that your concept designers, product designers, marketing teams, sales teams, packaging designers, and everyone else involved is on board with the process and talking to one another.  

Don’t forget to run the whole gamut of product testing, including the final product validation before you launch. Apparel company Hanes Brands has worked with Highlight multiple times to quickly and cost-effectively recruit a team of thoughtful, committed testers who wear test their latest products.

Let your customers point the way to your next breakthrough

Uncovering hidden market opportunities requires more than surface-level observation—it demands a deliberate, data-driven approach. White space analysis consisting of ethnographic and psychographic market research helps you identify unmet consumer needs, underserved market segments, and untapped potential that your competitors might not see.

Keeping in touch with real customers who are motivated to give honest insights is a powerful strategy for uncovering white space opportunities that illuminate pathways to differentiation and long-term success.

Now it’s time for some inspiration. How will your brand help create the future that nobody expected?