The Innovation Barometer, powered by BASES Innovation Measurement, quickly identifies, categorizes, and measures innovations, to bring you a monthly update on the most active players in CPG innovation, what’s up, what’s down, who’s winning, who’s losing and more.
January 2024 edition
What is the current state of innovation in the CPG industry?
BASES Innovation Barometer uses NIQ sales data to give you an overview of innovation activity and performance across six key super-categories: food, confectionery and snacks, beverages, alcoholic beverages, home care and personal care.
Non-Alcoholic Beverages is the only category showing an increase in the number of innovations launched compared to the same time a year ago, with a symbolic increase of 1%.
However, when comparing to Q3 2023, Alcoholic Beverages and snacks are the two categories showing increases in innovation launches, while Non-Alcoholic Beverages show a symbolic 1% decline
Confectionary & Snacks once again holds the top spot when looking at the highest number of innovations sold on promotion. Home Care is the category where innovations have the highest average velocity and the highest innovation contribution to total sales across all categories.
Category with highest number of innovations sold on promotion
Category where innovations have the highest average velocity
Highest innovation sales contribution to total value sales
Confectionary & Snacks
Compared to last quarter, there is almost no change in total innovation contribution, which now stands at 5.2%. – a 0.1% increase since our last update. When looking at innovation sales on promotion, it’s a similar story . We see only a 0.1% increase, measuring at 31.6%
Looking at the most active brand owners in terms of innovation launches, 4 out of 5 companies are players in Personal Care, with P&G leading the pack. PepsiCo is the only player from the Food and Beverages segment in this quarterly update.
5 most innovation active brand owners
Home Care + Personal Care
Confectionery & Snacks + Food + Non Alcoholic Beverages
Innovation market at a glance
With value sales on the rise for both the total market and innovations, it is interesting to note that we see fewer total products on shelf. At the same time, the number of new items being launched continues to decrease as well.
When it comes to the average eq price, while the total market sees a slight increase of 3.2%, the innovation average eq. price has seen a dramatic increase of almost 40% compared to previous quarter.
Meanwhile, average item velocity shows a solid increase of 7.7%, while innovation item velocity displays a decline of 7.9%
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