In a market where volume consumption per capita has steadily trended downwards since 2008, new products have been critical in driving up spend levels and overall dollar growth for the wider beverage sector. In fact, findings from Nielsen’s 2013 Wider Beverage Report show that new products have added $3.77 billion to the wider beverage market over the past four years.
Cider has had the biggest success when it comes to NPD, with the category attributing an astounding 62 percent of its values sales in 2012 to products that did not exist in the previous year.
Retailers have also placed a huge amount of focus on new product development in the private label arena – but not always successfully. We found a third of private label beverage turnover in 2012 was generated by new products, but one in eight were being delisted. The corresponding numbers for branded products was 15 percent turnover through new products, with just 1 in 20 being delisted.
The report highlights the continuous investment in beverage innovation over the past few years; and this activity has been instrumental in off-setting consumption declines. Introducing new products that blur the lines between beverage categories – effectively developing new tastes based on familiar flavours – will be one of the keys to success in the future.
The comprehensive 2013 Nielsen Wider Beverage Report is available for purchase at the Nielsen Shop. It is the only industry report that provides an exclusive account of beverage performance over the past four years across categories, channels and pack types.
The full report contains more detail on the following: