Abhishek Velani’s Post

A Wake-Up Call for CPG Companies: Innovate or Stagnate!   A recent report by Mintel, a global market intelligence agency, reveals a concerning trend: global CPG innovation in the first half of 2024 has dropped to an all-time low. Only 35% of products are genuinely new, while a staggering 65% are merely "renovations"—line extensions, reformulations, new packaging, or relaunches. In particular, the food and beverage sector is facing the toughest challenge, with only 26% of products launched between January and May this year being truly new, down from 50% in 2007.   While every region has seen a decline, North America and Latin America have lagged significantly behind the Middle East, Africa, and Asia Pacific, where a more entrepreneurial mindset is driving innovation.   Compounding these challenges, many consumers are shifting to private label products for affordability, with little to no difference in quality from big brands. If major players fail to innovate, they risk losing market share. With consumer fatigue and an overcrowded market, how do you envision the future of innovation unfolding in this space?   #CPG #FoodandBeverage #Innovation #PrivateLabel #MarketTrends #ConsumerGoods https://lnkd.in/gS5Jp6tm

The future of Consumer Packaged Goods (CPG) hinges on innovation, but recent data from Mintel reveals a concerning trend: only 35% of global CPG launches in early 2024 are genuinely new products, the lowest since 1996. This innovation shortfall, coupled with recent price hikes by major brands, makes it easier for consumers to switch to private-label alternatives. While North and Latin America show the most significant decline in new product launches, regions like the Middle East, Africa, and Asia-Pacific are leading in innovation, driven by robust economic growth and a growth mindset. To combat stagnation, major CPG companies are investing in startups through in-house venture capital units, aiming to harness new consumer trends and agile business models. Reach out to Sharon Widauf or Paula Jose for more information on how MSI Express is charting a path for success. MSI Express has 14 locations in 6 states to provide you with operational excellence & world class speed to market. MSI Express is a strategic, innovative contract manufacturing and packaging company. Our growing breadth of capabilities and trusted team of problem solvers are a perfect match for the challenges of today’s CPG world. #manufacturing #supplychainmanagement #innovation #MSIExpress #foodindustry #foodmanufacturing #packagingsolutions #foodandbeverage #sustainability #packaginginnovations #petfood #petfoodindustry #inc5000list #snackfood #gummies #supplements #consumerbehavior #packaging #foodbusiness #foodandbeverageindustry #food #foodandbeveragemanufacturing #innovation #supplychain #contractpackaging #contractmanufacturing #copack #copackager #packaging #cpg #cpgindustry #comanufacturer #brand #energy #compliance #foodsafety #quality

Our Mintel Global New Product Database shows that for the first five months of 2024, just 35% of global CPG launches across food, drink, household, health, beauty, personal care and pet care industries are genuinely new products. 🛒 This is the lowest proportion of innovation Mintel has recorded since it began tracking new products in 1996.💡 Declining innovation comes at a time when big brands have just pushed through significant price increases, in many cases without offering consumers any additional benefits. 📉 This makes it easier for consumers to switch to private-label alternatives. For example, in May 2024, almost 31% of US adults admitted to buying more store brands over the past two months.🔁 Will those consumers automatically return to big brands once they feel more financially confident? Explore the decline in innovation and uncover the key drivers behind this trend ! ⤵️

What are the key attributes in an investment-worthy brand in 2024? Hear the insights from Will Quartner of Prelude Growth Partners, in this special collaboration video between The Food Institute and SPINS delving into innovation and values within the CPG Industry. Watch the full video: https://lnkd.in/ex5wBKjN #cpg #foodindustry

📈The key to faster growth for CPG companies in 2024? According to this piece from Food Dive, innovation. 💡 Why? Because new products are more important than ever as consumers seek to curtail spending and navigate an ever-expanding array of choices. https://hubs.ly/Q02nm_zT0 #packaginginnovations

Innovation in the CPG industry is at an all-time low worldwide In this very interesting report from Mintel, the decline in innovation and the key drivers are highlighted and the impact on major brands is shown. Where is the next wave of innovation coming from? Read for yourself: https://lnkd.in/dXhRm5dm

🌟 "The best way to predict the future is to create it." 🌟 In the fast-evolving world of CPG, innovation isn't just an option—it's a necessity. Mintel’s analysis shows that such creativity has been in short supply in recent years, and this innovation drought risks the future profitability, and potentially, even survival, of established CPG industry players. Check out the insight here: https://lnkd.in/dZDWZs8j #CPGInnovation #FutureOfCPG #MintelInsights #ConsumerTrends

Super interesting read from Mintel on FMCG! Innovation ambition has been declining significantly the past years. Although there were several good reasons to scale back on innovation, the outcome remains the same: Differentiation depends on Innovation. Without it, customers will be more inclined to search for cheaper alternatives. So the time to innovate is now! At Verhaert | Masters in Innovation, we are ready to listen to your innovation ambitions, give our honest view and help you turn your ambitious ideas into breakthrough innovations. Some quotes from the report "for the first five months of 2024, just 35% of global CPG launches (i.e. across food, drink, household, health, beauty, personal care and pet care) are genuinely new products. This is the lowest proportion of innovation Mintel has recorded since it began tracking new products in 1996."  "McKinsey has analysed Nielsen data to show that between 2016 and 2020, only 25% of the growth of CPG was driven by leading brands, with small and medium-sized brands capturing 45% of growth and private label, 30%." "in May 2024, almost a third (31%) of US adults admitted to buying more store brands over the past two months. Will those consumers automatically return to big brands once they feel more financially confident?" https://lnkd.in/eScMgYcJ

On the Strategic aspect of Innovation in the CPG world!