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.
January 2024 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, confectionery and snacks, non-alcoholic beverages, alcoholic beverages, home care and personal care.
Personal Care, Home Care and Food are the only 3 categories showing a slight increase in the number of innovation launched compared to the same time a year ago, with a symbolic increase of 1-2%.
However, when comparing to Q3 2023, Alcoholic Beverages and Confectionery & Snacks are the two categories showing a slight increase in innovation launches, with all other categories showing a decline.
Home Care once again as the category with highest number of innovations sold on promotion and highest number of innovation contribution to total sales between all categories. Alcoholic Beverages is showing the highest average velocity when it comes to innovation sales.
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
Alcoholic Beverages & Snacks
Compared to last quarter, we see a symbolic 1% increase in total innovation contribution, which now stands at 9%. When looking at innovation sales on promotion there is almost no change from our last update, with only a 0.6% increase, measuring at 17.2%.
Looking at the most active brand owners in innovation, P&G leads the way with L’Oreal following closely.
5 most innovation active brand owners
Home care + Personal Care
Procter & Gamble
Home Care + Personal Care + Non Alcoholic Beverages
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, both total market and innovations see a strong increase of 9% and 10.5% respectively, compared to previous quarter.
Meanwhile, average item velocity shows a strong increase of 18.9%, while innovation item velocity displays a strong 14.2% decline.