Product Launches Postponed

For years the industry buzzed about the glut of product launches, particularly from U.S. food and drink manufacturers. Last year, however, it appears the recession took a bite out of the rush to get new food and drink items to the shelf.

According to Mintel’s Global New Product Database (GNPD), such launches declined nearly 30 percent in 2009 – the most significant retrenchment in a decade, says Lynn Dornblaser, leading new product expert at Mintel.

“We see that a number of small companies, which typically introduce a wide range of products, have been stopping or slowing their introductions due to the economy,” she says. “Additionally, some categories have simply become so oversaturated that there is little room for new products.”

There were a few growth areas. The introduction of products making ethical and environmental claims picked up in 2009, with the number of products characterized as having “environmentally friendly packaging” nearly tripling. Products making economy-sensitive claims increased 72 percent from 2008 to 2009.