Stay one step ahead by identifying and monitoring new product launches
Spotting and tracking new brand and sub-brand launches as they happen should be integral to corporate innovation strategy. Knowing what new products are entering the market and tracking them over time to see which succeed and which fail helps companies recognise innovation trends that respond to changing consumer interests and purchase motivations. With this insight, they can benchmark existing portfolios and identify opportunities to innovate and stay ahead.
Euromonitor has been tracking new product launches in packaged food online, utilising SKU scraping capabilities, giving visibility to where new products are emerging, the type of innovation happening, and which companies are expanding their portfolios and leading in terms of new product launches.
Why packaged food innovation prevails in times of economic uncertainty
Launching new products is necessary to remain competitive, but there are risks in getting it right. In the current challenging economic climate, this is especially difficult for business. Throughout 2022, rising prices hit consumers and brands alike and, in 2023, the cost of goods, raw materials, services and more have remained high. In response, consumers have taken steps to save money including switching from branded goods to generics or cooking and eating at home more instead of eating out. Companies have reformulated products and sourced alternative, lower-priced ingredients to minimise the impact of rising costs and launched fewer new products.
Using Euromonitor’s new product tracking tool, we can see a decline in the number of new brands launched in the packaged food categories covered of over 18% between 2021 and 2022, globally
Source: Euromonitor International
Companies are more hesitant to enter an environment with uncertain economic conditions with a new brand. Instead, the focus is on expanding existing brands, in particular adding new budget lines and extending private label portfolios to meet consumers’ need to trade down on everyday purchases and get more value for money.
High levels of innovation detected in snacks as consumer eating habits and occasions evolve
According to Euromonitor’s product innovation tracker, nearly two thirds of new packaged food brand and sub-brand launches detected in 2022 were in snacks categories, especially chocolate confectionery, sweet biscuits and salty snacks. This high level of innovation in snacks is unsurprising given consumers’ changing eating habits and occasions which lean towards more small portions throughout the day and fewer big meals, as well as a desire for affordable, healthy and permissible indulgent snacks as consumers become savvier in their spending but still want to indulge and treat themselves. This has all contributed to an increase in demand and the resilience of these product categories, even in the face of challenging economic conditions, creating opportunities for brands to innovate in this space.
Consumer trends play a pivotal role in steering innovation within the packaged food industry
In exploring our product innovation database and assessing the new launches detected in packaged food, it is interesting to see how brands are flexing and innovating around key consumer trends. Some are finding success through capitalising on consumers’ pursuit of value, others on premiumisation or the continually evolving wellness trend. These are three of Euromonitor’s megatrends which highlight how consumers’ behaviour and priorities are shifting.
For example, looking at the new launches detected within yoghurt and sour milk products during 2022, a notable standout is the increase in activity compared to the preceding year. This uplift includes products aligning with the Wellness megatrend such as those designed to enhance gut health. Similarly, the chocolate confectionery sector has witnessed a notable uptick in product launches, reflecting consumer inclination towards cost-effective indulgences amid economic challenges—an alignment with the Pursuit of Value megatrend.
The meat and seafood alternatives space has experienced a slowdown in launches of 40% compared to the previous year, indicative of an industry in a mature phase with limited untapped opportunities
Source: Euromonitor International
Despite its alignment with crucial megatrends like Wellness and Sustainability, the plant-based and alternatives market has reached a saturation point after years of intense innovation. Additionally, the relatively higher price points of these products are dissuading budget-conscious consumers, who are presently prioritising saving money.
Tracking new brand and sub-brand launch activity gives real insights to inform innovation strategy
Utilising web scraping technologies to track brands’ NPD initiatives allows companies to discern trends in product evolution, understand competitors' responses, and pinpoint potential areas for future innovation within their own business.
Learn about new product launch trends in soft drinks read our article, Monitoring NPD for Successful Innovation in Soft Drinks, or download our new white paper, Top 10 Global Consumer Trends 2024, for in-depth consumer trend descriptions, case studies and strategic recommendations. To learn more about Euromonitor’s Megatrends, read 10 Megatrends to Watch.
To learn more about tracking new brand and sub-brand launches across the global digital shelf, visit our Innovation product page.