New Report Offers Food for Thought on CPG Innovation; Smaller Brands
Account for Half of Revenues; Beauty Outpaces Other Non-food Categories
CHICAGO–(BUSINESS WIRE)–IRI®, a global leader in innovative solutions and services
for consumer, retail and media companies, announced today the release of
its 2018
New Product Pacesetters,™ the 23rd
annual report, highlighting the most successful new product launches
across food and beverage, non-food, and convenience store sectors.
Smaller companies continue to dominate the list, and the most successful
products emphasize wellness and convenience. Among food companies,
indulgence is in, taking the top two spots. Within the non-food sector,
beauty products bested other categories, with 28 products achieving
Pacesetter status, while enhanced laundry products held the number one
and four positions.
“The majority of 2018 New Product Pacesetters addressed at least one of
the overriding themes we’ve observed over the past few years,” says Joan
Driggs, vice president, Content and Thought Leadership, IRI. “They’re
upping the consumer experience, delivering against expectations and
addressing simplicity, either with ingredients, convenience or
sustainability.”
Products from Smaller Companies Top 50 Percent for the First Time
For the first time, products developed by companies with annual revenues
under $1 billion represented the majority of top-ranking brands,
accounting for 51 percent of the products listed and representing 27
percent of Pacesetters revenues. Companies with sales between $1 billion
and $5 billion continued to have declining representation, responsible
for just 27 percent of products and 19 percent of revenues, as compared
to 35 percent and 26 percent five years ago, respectively. Larger
companies, those with more than $5 billion in revenues, accounted for
just 22 percent of Pacesetters products but 54 percent of Pacesetters
sales.
Winning companies are growing dollar sales based on an enhanced
understanding of consumer wants and needs, capturing adjacent white
space and/or acquiring companies that have a demonstrated strength in a
particular niche.
Total 2018 Pacesetters’ first-year sales dollars continued the decline
IRI has previously recognized; revenues of winners collectively shrank
by $3.4 billion between 2012 and 2018. However, total IRI-measured
multi-outlet channels (not including convenience store) sales grew 1.7
percent in 2018, following increases of 1.2 percent in both 2017 and
2016. This reflects improved understanding of consumer behaviors, which
results in consumers remaining interested in new products longer. Sales
momentum that in the past would often dissipate after year one now
continues into year two and beyond. Among 2017 Top 10 New Product
Pacesetters, seven of the top 10 maintained or increased sales in year
two.
“Two driving forces are reshaping the CPG landscape and are deeply
reflected in this year’s New Product Pacesetters,” said Larry Levin,
executive vice president, Market and Shopper Intelligence, IRI.
“E-commerce is driving home to consumers the value of convenience, and
shoppers now expect convenience in the products themselves, in addition
to how they purchase them and have them delivered. Second, artificial
intelligence (AI) and machine learning (ML) are arming manufacturers and
retailers with new insights into consumers’ wants and needs, resulting
in a new wave of products that capture shoppers’ initial interest and
maintain that interest over the longer term.”
Food and Beverage Leaders Concentrate on Indulgence
For consumers with a sweet tooth, 2018 was their year. Ferrero U.S.A.’s
Kinder Joy® and Mars’ M&M’s® Caramel achieved
first and second place status, respectively, with sales of $124.4
million for Kinder Joy and $120.6 million for M&M’s Caramel. In fact,
five of the top 10 Food and Beverage Pacesetters featured sweet or
savory indulgence. Health and wellness were also well represented with
products including Oui by Yoplait® and RXBAR®, a
protein bar, joining the list at number three and number five,
respectively. Lay’s® Poppables highlighted healthier
manufacturing by baking versus frying and Duncan Hines®
Perfect Size for 1™ is an excellent example of
portion-controlled indulgence, coming in at number 10.
|
2018 New Product Pacesetters: Top 10 Food and Beverage Brands |
|
| 1. Kinder Joy® | $124.4 |
| 2. M&M’s® Caramel | $120.6 |
| 3. Oui by Yoplait® | $100.5 |
| 4. Gatorade® Flow™ | $78.1 |
| 5. RXBAR® | $73.9 |
| 6. Grown In Idaho® | $59.9 |
| 7. Mountain Dew® Ice™ | $59.9 |
| 8. Lay’s® Poppables™ | $51.6 |
| 9. Ritz® Crisp & Thins™ | $49.1 |
| 10. Duncan Hines® Perfect Size for 1™ | $47.9 |
Source: IRI Market Advantage™
For Non-food Leaders, Is Folding Laundry Next?
Laundry product manufacturers continue to bundle new ingredients and
benefits into these products as Tide® Ultra Oxi led the 2018
Pacesetters non-food category with $139.8 million in sales and Tide Pods®
Plus Downy® held down the number four position.
Beauty care products also featured prominently among this year’s
Non-Food New Product Pacesetters. In addition to 28 beauty products
achieving Pacesetters status, three were in the top 10: Idea Village’s
Finishing Touch® Flawless™ took the number
seven position with $68.4 million in first-year sales, Unilever’s Love
Beauty and Planet® with $62.3 million was number eight and
the ninth position was taken by L’Oreal® Voluminous®
Lash Paradise™ with $60.5 million.
|
2018 New Product Pacesetters: Top 10 Non-Food Brands ($ Millions) (Total Year-One Dollar Sales, Multi-Outlet) |
|
| 1. Tide® Ultra Oxi | $139.8 |
| 2. Nature’s Recipe® | $95.3 |
| 3. Olly® | $90.3 |
| 4. Tide Pods® Plus Downy® | $82.0 |
| 5. Xyzal® | $76.5 |
| 6. Flonase® Sensimist™ | $69.8 |
| 7. Finishing Touch® Flawless™ | $68.4 |
| 8. Love Beauty and Planet® | $62.3 |
|
9. L’Oreal® Voluminous® Lash Paradise™ |
$60.5 |
| 10. Arm & Hammer™ Slide™ | $57.1 |
Source: IRI Market Advantage™
Hydration Quenches the Thirst for Growth in Convenience
Beverages are clearly the “energy” driver in convenience, taking eight
of the top 10 spots in this year’s New Product Pacesetters. Pepsi
products earned the number one, six and 10 positions (number 10 in
partnership with Lipton), and Red Bull held two spots.
Consumers turn to the convenience channel for a boost; three of the top
10 products were energy drinks, and four other products include
stimulants, two chocolate candy products, one ready-to-drink coffee and
one ready-to-drink tea.
|
2018 New Product Pacesetters: Top 10 Convenience Store Brands ($ Millions) (Total Year-One Dollar Sales, Convenience Store Channel) |
|
| 1. Gatorade® Flow™ | $144.9 |
| 2. Core® Hydration | $122.9 |
| 3. Monster® Hydro™ | $57.3 |
| 4. Red Bull® Purple Edition | $52.7 |
| 5. M&M’s® Caramel | $48.4 |
| 6. Mountain Dew® Ice™ | $45.8 |
| 7. Kinder Joy® | $42.2 |
| 8. Red Bull® Lime Edition | $37.6 |
| 9. Starbucks® Cold Brew | $32.1 |
| 10. Pure Leaf® Tea House Collection | $31.8 |
Source: IRI Market Advantage™
About the Report
The IRI “2018 New Product Pacesetters” report is
available exclusively from IRI, the global leader in innovative
solutions and services for consumer, retail and media companies. The
findings of this report were compiled based on insights from IRI’s New
Product Innovation Practice’s powerful suite of analytical and
decision-making tools, as well as the 2019 IRI New Product Survey. To
download the full report, visit:
https://www.iriworldwide.com/en-US/Insights/Publications/New-Product-Pacesetters-2018.
About the IRI Partner Ecosystem
IRI fundamentally believes that delivering differentiated growth for
clients requires deep, highly integrated partnering with a variety of
best-of-breed companies. As such, IRI works closely with a broad range
of industry leaders across multiple industries and sectors to create
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its clients more effectively collaborate and compete in their various
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About IRI
IRI is a leading provider of big data, predictive analytics and
forward-looking insights that help CPG, OTC health care organizations,
retailers, financial services and media companies grow their businesses.
A confluence of major external events — a change in consumer buying
habits, big data coming into its own, advanced analytics and
personalized consumer activation — is leading to a seismic shift in
drivers of success in all industries. With the largest repository of
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constituents and deliver market-leading growth. For more information,
visit www.iriworldwide.com.
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IRI Contact:
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Email: [email protected]
Phone:
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