Mintel reports 51% drop in new product introductions
April 29, 2009
by FoodBusinessNews.net Staff
CHICAGO — New product introductions are down, a fact backed by a 51% decline in total food and beverage product launches from the first quarter of 2008 to the first quarter of 2009, according to Mintel International’s Global New Products Database.
"Faced with low consumer confidence and reduced spending, many food and beverage manufacturers cut back on product development and new product launches," said Lynn Dornblaser, new product analyst for Mintel. "Many companies face internal budget cuts that affect everything from new product ideation to development and marketing."
Mintel also reported higher-than-average declines for categories such as non-alcoholic beverages, chocolate, sugar and gum confectionery, and dairy.
Despite the declines, Ms. Dornblaser said the reduced numbers won’t last. She said while food and beverage introductions decreased steadily from October 2008 to February 2009, they increased in March. She also said Mintel has tracked new products through three recessions and found product launches decline somewhat at the beginning of a recession and then increase quickly when the economy begins to recover.