Food innovations in freefall in France and around the world
The number of new food product launches has fallen by 12.7% across the world and by almost double this level (23% )in France, where the number has dropped from 3093 new products listed in 2021 to 2374 in 2022. This is according to the 26th Global Food Innovation Barometer conducted by ProtéinesXTC, after 18 months of the Covid crisis, followed by a considerable rise in inflation throughout 2022, in the context of the war in Ukraine causing supply difficulties.
Furthermore over the last 6 years, the number of innovations has fallen by 33% worldwide. This decline is particularly marked in Europe, less so in the USA and Asia. Faced with the very uncertain context linked to Covid and then to inflation, manufacturers have been content to expand their ranges. We are now witnessing sharper sales decreases in national brands than in private labels.
Nor have sales of new products performed strongly. According to Circana/IRI, in 2017 in France, the average turnover of an innovation was €503,000. In 2022, it fell to €363,000, a drop of 28% in 6 years.
But what does the future hold for food innovations?
At present, negotiations from both buyers and suppliers are almost exclusively focused on price. But what about the customer experience? In an inflationary context where innovation is blocked by price increases, national brands are focusing more on extending their ranges, a less costly process, rather than developing new products. However, if supermarket chains no longer offer innovations for all shoppers who are keen on new products, it is likely that they will seek them through other distribution channels. Offering new products at reasonable prices is therefore essential for retaining and developing customers.
Moreover, we are aware that the last few years, a post-Covid context and the Ukrainian war period have left a strong and indelible mark on everyone’s mind. It is therefore important and necessary to ask ourselves how this context has had a deep impact on our way of life and what kind of new consumer trends will emerge. Today, the retail sector is being transformed by the rise of plant-based foods, food traceability and the adoption of advanced technologies to optimise the supply chain and reduce food waste. Importantly, a return to simple, healthy products seems essential so that these products are not just reserved for the highest social categories.
The food industry has to strive to make the internal innovation process more efficient, to reduce production costs in order to be able to offer simple, healthy products at a reasonable price. And those retailers who are able to adapt to these trends will be in the best position to meet consumer expectations and thrive in an ever-changing and evolving market.