The number of new product innovations in the grocery space is declining, new data from NielsenIQ has found, with the total number of innovations across Germany, France, Spain, Italy and the UK amounting to 38,000 last year.
This is down from nearly 54,000 in 2019, NielsenIQ said, adding that this downward trend is continuing into 2022.
The research firm noted that inflationary pressures, a looming economic crisis, supply chain disruptions and increased energy and commodity price concerns mean that many brands are 'holding back' on NPD, instead refocusing their efforts on their existing portfolio.
NielsenIQ revealed the data as it published its BASES 2022 Top Breakthrough Innovations report, showcasing new products in Germany, the UK, Poland, France, Italy, Portugal, Norway and Austria, among other markets.
Eager For New Products
“Our latest data show that only a fraction – 6% – of global shoppers are averse to new products right now," said Celine Grena, NielsenIQ BASES Europe leader. "Some 94% of FMCG consumers today are open to try new things.”
This is a trend that could benefit both larger players ad well as small and medium-sized brands, NielsenIQ added.
Recipe For Innovation
According to the research firm, the recipe for successful innovation hasn't changed as a result of the pandemic or the current inflationary marketplace, however agility is needed in order to be successful.
“The experience of pandemic years did generally not change the recipe for success," said Grena. "You will still need a good idea, a good product and a good activation strategy in order to succeed.
"However, the way of stirring the ingredients together has evolved. To create a good innovation brands need to be relevant to their consumers, making it easy for them to understand what the product is about and why they need it. They have to ensure their innovation is being perceived as genuine and authentic."