A lack of innovation in the FMCG sector has hindered the growth of GDP in Portugal, according to a study by KPMG and Kantar Worldpanel for Centromarca.
The study draws comparisons between the level of innovation in Portugal and that of neighbouring Spain, stating that more innovation by Portuguese firms could have benefited the FMCG industry by around €2 billion, resulting in the creation of around 26,600 jobs, according to newspaper Sol.
The study claims that in some product categories, "innovation is not yet a driver of demand for the sector", compared to Spain, where, on average, "the introduction of an innovation leads to an increase in demand of approximately 1.4%".
In Portugal, the study shows that 76% of the innovations applied to FMCG products failed during the first year.
It found that around 6% of employees operating in the FMCG sector in Portugal are dedicated to innovation.
In product categories where innovation efforts are greater, sales tend to be stronger, the study found.
Yoghurt, hair products and non-carbonated soft drinks are the categories that have seen the largest number of innovations.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine