What New Products Are Scoring With Shoppers?
Necessity may be the mother of invention, but innovation is necessary in the ever-competitive CPG and retail landscape. According to Chicago-based insights firm Circana, LLC, 83% of companies rank innovation as one of their top three priorities.
“Especially during times of uncertainty, we know that new products are important to retailers – they want to have products that excite their shoppers. It’s their products, after all, that get people in the store,” said Joan Driggs, VP of content and thought leadership at Circana, during a recent webinar on the release of the 2024 New Product Pacesetters report.
[RELATED: Value, Taste Key Drivers of Continued Private Label Growth]
Later, Progressive Grocer spoke with webinar co-presenter Lisa Maas, principal and practice lead, innovation at Circana. “Retailers’ goal is to keep shoppers in the store and many of these innovations are tapping into what we call key loyalty attributes and claims. Shoppers are seeking out, irrespective of favorite products and brands, new product,s” she affirmed.
The 30th annual New Product Pacesetters report (see below for the list of the Top 10 items in food and nonfood categories) revealed four major innovation themes among shoppers looking for interesting, relevant items that meet both their practical and emotional needs. Those themes include high protein offerings that span traditional and transformative offerings; the expansion of trusted brands, including restaurants, into new retail segments; the continued advent of functional and flexible consumables that cater to shoppers looking for enhanced benefits; and a surge in beauty innovations on both ends of the spectrum, with “bare” clean products as well as super bold items.
“New this year is where protein is playing. We see it pulsing across many categories, from traditional powders added to morning smoothies to high-protein meals and snacks,” observed Driggs during the webinar.
Maas also pointed to trends in health, wellness and beauty exemplify how shooppers are clamoring for more options for their varying needs.
“’Skinimalism’ is a trend that started in earnest in 2022 that we are continuing to see, focused on simplified skincare routines, all-in-one products and clean label that ladders up to this,” she shared. “Pacesetters in the beauty space highlight the spectrum from ‘skinimalism’ to ‘maximalism’.”
Despite another volatile year across the operating environment, the pace of innovation remained robust. The 2024 Pacesetters achieved an impressive $8.4 billion in combined year-one MULO+ sales, Circana reported. Many rollouts came from large manufacturers, who sped up launches in 2024 compared to prior years. Underscoring the power and potential of medium, small and startup brands, Circana’s research found that younger consumers tend to outspend on new offerings from those companies.
While new product development remains dynamic, brands are navigating challenging macroeconomic conditions with different types of introductions, like partnering with a particular retail for a first launch.
“I think many companies are looking to de-risk innovation coming out of the pandemic with its supply chain issues, when retailers were being highly selective on what to take in their stores. As manufacturers are investing, they want to make sure that products are hitting all of the right notes with consumers and are looking for opportunities with either initial launches within a retailer or a test market approach to really understand and refine performance,” Maas told PG adding, “Also, we see a lot of items starting online and moving their way to retail.”
The Top 10 Food and Beverage New Product Pacesetters for 2024
- Just Bare Lightly Breaded Chicken
- Dr Pepper Strawberries & Cream
- C4 Energy
- Red Bull Sea Blue Edition
- MrBeast Feastables
- PRIME Energy
- Legendary Foods
- Golden Island
- Real Good Foods Lightly Breaded Chicken
- CELSIUS Essentials
The Top 10 Nonfood New Product Pacesetters for 2024
- Charmin Ultra Soft Smooth Tear
- Cascade Platinum Plus ActionPacs
- Hero Cosmetics
- Cirkul
- Swiffer PowerMop
- Lume
- Gain + Ultra Oxi
- PrettyLitter
- TEMPTATIONS Dry Cat Food
- Bloom
More details about the findings from the 2024 New Product Pacesetters report are available online.
