Economy, environment hit new product launches
January 26, 2010
The total number of food and beverage product launches was down significantly last year, and the tone of those introductions also changed in response not only to the recession but other consumer trends as well.
Mintel International, Chicago, has announced an analysis of its Global New Product Database that showed food and drink product launches declining nearly 30% in the United States during 2009 on a year-over-year basis.
Still, while roll outs were down overall, introductions were up in some categories defined by product claim. For example, the number of products launched claiming ethical and environmental virtues increased by 32% from 1,501 in 2008 to to 1,984 in 2009. Within the larger category, the number of new products making an environmentally friendly packaging claim increased 103% between 2008 and 2009 from 712 to 1,447.
Many packaged goods manufacturers have made such claims without additional investment in products or boxes by touting existing features. That has allowed them to address consumer concerns without adding costs in a market where deflation has impacted many product categories.
Economy claims gained, too, with the number of new products making a low-cost assertion increasing by 72% from 238 in 2008 to 410 in 2009, hardly surprising given the recessionary environment.
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