NEWS29 July 2016

Grocery new product launches fall by 13%

FMCG News Retail Trends UK

UK – The number of new products being launched in UK retail stores fell by 13% for branded items and 26% for private label in 2015 compared with 2013.

According to the 2016 New Product study by retail market analyst, IRI, first year sales of branded NPD contributed 2.1% to overall sales in the UK, down from 3.4%. And just one in 20 of new launches managed to secure 75% distribution within 12 weeks (its measure for NPD success).

These findings come in a climate of retailer cut backs, as they remove slower selling items. This has resulted in 1,000 fewer packaged grocery items on the shelves – a drop of 6.3%. New product launches are traditionally seen as important for category growth, often encouraging people to buy more premium priced products.

Tim Eales, director of strategic insight, IRI said: “As UK retailers look to rationalise their ranges, new products are finding it harder and harder to get listings. At the same time, however, suppliers are producing fewer new products, largely due to budgetary pressures brought about by massively high trade promotion costs and squeezed margins as market prices drop.”

The study is based on about 3,000 product launches from 2013-2015 across food, soft drinks, confectionery, personal care, health and household categories.

@RESEARCH LIVE

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