First Half of 2010 Showing Increase in New Food, Drink Products

The introduction of new food and beverage products in the United States is up about 15% over the last half of 2009, which is a positive sign that the fall-out from the economic recession has stabilized and manufacturers are creating new innovations to meet consumer demands.

The data presented at the 2010 Institute of Food Technologists annual meeting showed a reversal of the last half of 2009, when the number of new food and nonfood products declined 22%. The 15.2% increase in food and beverages this year has been driven by new “treat foods” (Greek yogurt, pretzel M&Ms) and those that make it easier to create restaurant-type food at home (specialty mayonnaise, spice collections), said Lynn Dornblaser, director of CPG Trend Insight at Mintel International Group, which conducted the research.

U.S. manufacturers have not come back to the natural/organic food category, Dornblaser said. Organic offerings peaked at 12% of new products in 2008, and have since dipped to about 7%. Those new products now are largely driven by products from smaller companies or by private label organics. The appeal of private label products is they allow consumers to choose an organic product, even though it costs more than a nonorganic private label product, but still pay less than the premium organic brand, Dornblaser said.

Overall, private labels are driving many food and beverage decisions as consumers try to cut dollars from their grocery budgets, said Barbara Katz, president of HealthFocus International, who presented data from the HealthFocus Trend Study at the meeting. Among those surveyed who have had their income reduced, 40% reported buying more private label products.

For all shoppers, only one out of 10 reported being loyal to a brand, with the least loyal in the 18 to 29 age group.

Source: Institute of Food Technologists