Over the first five months of this year, only 35% of global CPG launches were entirely new products, the lowest percentage since Mintel started tracking new products in 1996. The other 65% of launches, according to new insights from Mintel, were renovations — reformulations, line extensions, new packaging, etc.
At just 29%, the percentage of innovative product launches was lowest in the US. This lack of innovation, coupled with challenging food prices, has made it easier for consumers to switch to private-label products — about three in 10 Americans have been buying more store brands in recent months.
Innovation has dropped the most in food and beverage, where, globally, just 26% of this year’s launches were new products. This is a significant drop from 50% back in 2007, and well below other CPG industries, including beauty and personal care (46%), health (37%), and household (33%).
With consumers focusing more on value than discovering new products, food and beverage brands have opted to introduce new varieties, formulations, and packaging to bring new yet familiar products to their customers. However, as inflation eases and consumers regain confidence, demand for innovation is likely to increase.
