Mintel Reports 30 Percent Drop in Food & Drink Product Launches
Feb 2, 2010
The economic slump took its toll on U.S. food and drink
manufacturers in 2009, according to a recent review of Mintel's
Global New Product Database (GNPD). Food and drink product launches
show a substantial decline of nearly 30 percent from 2008.
"In the last decade, Mintel GNPD has only tracked occasional, small
declines in new product introductions for the U.S. market, never a
decline as strong as this," noted Lynn Dornblaser, leading new
product expert at Mintel. "We see that a number of small companies,
which typically introduce a wide range of products, have been
stopping or slowing their introductions due to the economy.
Additionally, some categories have simply become so over-saturated
that there is little room for new products."
Despite this declining trend, there are some categories and claims
that found a hidden niche in which to excel. Ethical and
environmental claims increased from 9 percent of all product
launches in 2008 to 17 percent in 2009. Specifically in this
category, the environmentally friendly packaging claim nearly
tripled, growing from 3 percent of all products launched in 2008 to
9 percent in 2009.
"The increase in ethical and environmental claims is less about
companies introducing new products or changing their packaging, and
more about manufacturers communicating with their consumers and
knowing what's important to the people who purchase their
products," said Dornblaser.
Meanwhile, in clear correlation with the recession, products
boasting an economy claim have increased by 72 percent from 2008 to
2009*. In addition, side dishes was one of the few categories of
food and drink that saw an increase in 2009, with 16 percent more
launches than in 2008*. This increase is most likely due to more
people eating in and the introduction of products that offer
convenient solutions, such as vegetable steam bags.
Still, most categories saw decreases due to the down economy, noted
Dornblaser: "Natural and organic products, which saw large
increases in 2008, took a few steps back in 2009 due to their
higher price points."
Food and drink introductions with an all-natural claim decreased
from 15 percent of all launches in 2008 to 13 percent in 2009. The
organic claim showed a similar decline of 12 percent to 10 percent
in the same time frame.
*These numbers are based on a percentage difference from 2008 to
2009, not based on a percentage of total launches.
Mintel Reports 30 Percent Drop in Food & Drink Product Launches
Feb 2, 2010
The economic slump took its toll on U.S. food and drink manufacturers in 2009, according to a recent review of Mintel's Global New Product Database (GNPD). Food and drink product launches show a substantial decline of nearly 30 percent from 2008.
"In the last decade, Mintel GNPD has only tracked occasional, small declines in new product introductions for the U.S. market, never a decline as strong as this," noted Lynn Dornblaser, leading new product expert at Mintel. "We see that a number of small companies, which typically introduce a wide range of products, have been stopping or slowing their introductions due to the economy. Additionally, some categories have simply become so over-saturated that there is little room for new products."
Despite this declining trend, there are some categories and claims that found a hidden niche in which to excel. Ethical and environmental claims increased from 9 percent of all product launches in 2008 to 17 percent in 2009. Specifically in this category, the environmentally friendly packaging claim nearly tripled, growing from 3 percent of all products launched in 2008 to 9 percent in 2009.
"The increase in ethical and environmental claims is less about companies introducing new products or changing their packaging, and more about manufacturers communicating with their consumers and knowing what's important to the people who purchase their products," said Dornblaser.
Meanwhile, in clear correlation with the recession, products boasting an economy claim have increased by 72 percent from 2008 to 2009*. In addition, side dishes was one of the few categories of food and drink that saw an increase in 2009, with 16 percent more launches than in 2008*. This increase is most likely due to more people eating in and the introduction of products that offer convenient solutions, such as vegetable steam bags.
Still, most categories saw decreases due to the down economy, noted Dornblaser: "Natural and organic products, which saw large increases in 2008, took a few steps back in 2009 due to their higher price points."
Food and drink introductions with an all-natural claim decreased from 15 percent of all launches in 2008 to 13 percent in 2009. The organic claim showed a similar decline of 12 percent to 10 percent in the same time frame.
*These numbers are based on a percentage difference from 2008 to 2009, not based on a percentage of total launches.
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