New Product Launches In Spain Hit New Low, Study Finds

Only 75 new mass-market products across the food, beverage, drugstore, and personal care categories were launched in 2024, the lowest number in recent years, raising concerns about market growth, competition, and consumer access to improved goods.

The report highlights the crucial role of retail distribution in innovation success.

Currently, only about 25% of manufacturer innovations reach store shelves, largely due to varying retailer strategies.

This limited access for consumers creates a negative feedback loop, discouraging further investment in new products, according to the study.

New Product Launches

Manufacturer brands, predominantly from Spanish companies, continued to drive innovation, accounting for 96% of new products in 2024.

However, supermarket adoption of these innovations remains low, with chains like Mercadona, Aldi, and Lidl stocking fewer new manufacturer products. Conversely, Carrefour, Alcampo, and DIA show higher rates of new product adoption.

The success rate for new products is also declining, with only one in five achieving success in 2024. This trend, if it continues, could lead to a €20 billion loss over the next decade, volume decline, and potential factory closures, according to the consultancy.

Most of the top 10 innovative products in 2024 were food and beverages, with a focus on indulgent items.

These include a cookie and caramel cream liqueur from Royal Swan (exclusive to Mercadona), Frankfurt Salchiloncha from Campofrío, Magnum’s Pink Lemonade ice cream, El Águila 0.0% unfiltered beer, and Aquarius peach isotonic drink.

Leading manufacturers of innovative products include Unilever (food), Mahou San Miguel (beverages), P&B (drugstores), and L’Oréal (perfumery).

César Valencoso, consumer insights director at Kantar, Worldpanel Division, commented, “We are in a situation where, at this rate, which will continue to decline, in 10 years, innovation and novelty will be insignificant, because it is heading for extinction and will have a brutal impact. The markets that function best are those with a balance between the manufacturer’s brand and distribution”.

To address this critical situation, Spanish brand association Promarca advocates for a collaborative forum with the government, manufacturers, and retailers to identify and overcome obstacles to innovation, ultimately fostering a more dynamic and consumer-focused FMCG market.