Circana: retailers have launched fewer new products in recent years

Product manufacturers and retailers worldwide have spent less on innovation over the past few years due to supply and manufacturing difficulties caused by the pandemic. According to the managers, changes in consumer demand and the economic slowdown also played a role in this. Most of all, companies want to avoid spending money on creating and distributing products that may later fall victim to the effects of inflation, Covid, and supply chain difficulties.

According to the market research company Circana, 13 percent fewer new products were launched in 2022 than in 2020. The largest decrease could be seen in the categories of beauty care, footwear, small appliances and toys. According to Marshal Cohen, a senior industry consultant at Circana, the decline is the result of several interacting factors. The pandemic has radically changed consumption habits, forcing manufacturers and retailers to make adjustments to keep up with changing demand.