EU Innovation Barometer
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.
July 2023 edition
What is the current state of innovation in the CPG industry?
BASES Innovation Barometer uses NielsenIQ sales data to give you an overview of innovation activity and performance across six key super-categories: food, confectionary and snacks, non-alcoholic beverages, alcoholic beverages, home care and personal care.
In our first European edition of Innovation Barometer, we see a decrease across the total market with almost 5000 less innovations launched compared to the previous 52 weeks.
Looking at individual categories, only Home Care counts an increase in total innovation launches: a staggering 2% increase compared to this time last year and 4% growth over the past 12 weeks.
Home Care also holds the top spot when looking at innovation sales growth, marking a +42% increase. When looking at average innovation velocity, Confectionery & Snacks show the highest average, whereas Home Care again leads the pack for highest innovation contribution to total sales: +9% growth compared to last year.
This isn’t surprising, considering that Home Care was the only category that showed an increase in innovations launched over the past 52 weeks (+2% vs. LY).
Category with greatest growth of innovations sales
Category where innovations have the highest average velocity
Highest innovation sales contribution to total value sales
Confectionary & Snacks
Innovation contribution is best described as a measure of how much of total sales is attributed to innovations. Over the past 52 weeks, we see that innovations have contributed to 7.7% of total sales between all six key super-categories.
However, Home Care innovations have contributed the most: 26% of innovation sales across all categories. Confectionery and Snacks immediately follows, with 24%.
Looking at the most active brand owners in innovations over the past 52 weeks, P&G takes the top spot with 2774 innovations launched.
5 most innovation active brand owners
Home care + Personal Care
Procter & Gamble
Home Care + Personal Care+ Non Alcholic Beverages
Home Care + Personal Care
Innovation market at a glance
With growth coming from every FMCG category, consumers have shown that they’re willing to spend on consumer-packaged goods; we see a total increase of +8% in value sales across all categories. Furthermore, there’s been a 10% total increase of innovation sales in all categories—except for Alcoholic Beverages, which saw a 9% decrease.
This decline is also in line with the double-digit drop in the number of new innovations in Alcoholic Beverages across Europe. In fact, the number of innovations launched across all categories dropped 9% compared to last year; Home Care with a 2% increase was the only exception. Home Care also saw the highest innovation sales growth in France, Spain, and Italy, but Breakfast Cereals came out on top in Italy, whereas Confectionery & Snacks led in Germany.
Overall, the average item velocity decreased by -5%, whereas innovation items saw a velocity increase of 3%.