SMEs are flexing their agility, producing three-quarters of new product launches.

 

It’s a truism that new products are the lifeblood of any industry – including office products –but a new report has revealed a significant decline in product innovations over the past two years, particularly across larger brand manufacturers.

 

Research firm Circana (previously known as the NPD Group), said there is a growing aversity to the perceived gamble of new products, as sales in FMCG products decline.

 

More than 144,400 new products were launched across Europe in 2022 compared to 172,997 in 2021 (-16.5 per cent). The largest drop was seen in France where new product launches fell from 27,317 to 19,843 (-27.4 per cent). 

 

Small and medium-size manufacturers, leveraging their ability to react to changing market forces quickly, were responsible for 75 per cent of all new products launched, contributing 68 per cent of total value sales from new products. 

 

Ananda Roy, a senior vice-president at Circana, said: “The evidence from our analysis means innovation continues to be a sustainable source of organic growth, despite difficult trading conditions and the cost of living crisis. While the ability to command a significant premium is constrained, new product launches continue to deliver the volumes that brand manufacturers need to maintain growth and market share.”