Product innovation is happening despite a challenging market environment. Though consumers tend to rely on a limited number of CPG products as their “go to” pantry solutions, they remain open to new products that make their lives easier, more exciting and and/or more rewarding. In fact, they are looking for product manufacturers to serve a wide variety of wants and needs.
Successful new product development, though, can be quite daunting. Generally accepted new product failure rates range from 60 percent to 80 percent. Thousands of new brands hit retail shelves each year, yet only 200 achieved best-of-the-best IRI New Product Pacesetter (NPP) status. In their first year, these brands earned an average of $34.8 million.
Still, innovation is critical to long-term survival for manufacturers. IRI’s New Product Pacesetters is an industry-recognized benchmark analysis of exceptional first-year CPG sales success for newly launched products. These brands are textbook examples of innovation done right and provide marketers with a road map on best practices, including the importance of year two, to ensure their own new product innovation is successful with shoppers.
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