Food & drink product launches decline in 2009

Chicago—During 2009, food and drink product launches show a substantial decline of nearly 30% from the previous year, according to a Mintel report. The decline, based on a review of the market research company’s Global New Product Database (GNPD), was greater than any it has seen in the last decade.

“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,” said Lynn Dornblaser, new product expert at Mintel. “Additionally, some categories have simply become so over-saturated that there is little room for new products.”

Despite the decline, there was growth in some sectors, including:

• ethical and environmental claims which increased from 9% of all product launches in 2008 to 17% in 2009. Specifically, the environmentally friendly packaging claim nearly tripled, growing from 3% to 9% of launches.
• products boasting an economy claim increased by 72% of launches from 2008 to 2009.
• side dishes was one of the few categories of food and drink that saw an increase in 2009, with 16% more launches than in 2008. This increase is most likely due to more people eating in and the introduction of convenience products, such as vegetable steam bags.

Still, most categories saw decreases due to the down economy, Dornblaser said. “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% of launches in 2008 to 13% in 2009; and the organic claim, showed a similar decline of 12% to 10%.

Source: Mintel