The pace of new products hitting grocery stores in the first quarter of 2009 was roughly half the number for the same period last year, according to the Mintel 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," Lynn Dornblaser, drector, CPG trend insight at Mintel, said in a press release. "Many companies face internal budget cuts that affect everything from new product ideation to development and marketing."
A number of categories have been pronounced in the fewer number of rollouts. Mintel identified non-alcoholic beverages, chocolate, dairy products, and gum/confectionery as categories that saw some of the largest percentage drop-offs year over year.
Mintel's Dornblaser is looking for the pace of new item launches to pick up. The number of rollouts grew in March over the previous two months. "Consumer confidence has leveled off for the time being, which marks an opportunity for manufacturers. Now is the time for ideation and innovation for products that answer shoppers' desires for value, quality, and pleasure," she said.
Discussion Questions: How do you think the slower rate of new item launches has affected food retailers year-to-date? What trends do you think we will see from new products (price positioning, packaging, etc.) launched over the rest of the year?