Innovation in consumer products is at a minimum in Spain. In 2023, only 89 new items have been launched that provide a different characteristic or attribute to their category, which is what is understood as innovative, according to the Innovation Radar, prepared by Kantar, such as a new flavor or a new texture compared to the 156 that were launched in 2010. And most of them fail to reach the shopping baskets. Only one in five innovative products was successful last year in the mass consumer sector (which includes food, beverages, drugstores and personal care)
What is the barrier? Among other things, its limited arrival on supermarket shelves, which does not exceed an average penetration of 30%. According to the consumer insights Director at Kantar Worldpanel, César Valencoso, “innovation needs more support, affection and care to contribute to the sustainable growth of the mass consumer market. “Innovations bring demand to brands and distributors, but their presence in the chains does not reduce the chances of access to the consumer.”
Specifically, according to the report, the distribution chain that exhibits the most innovations in its establishments is Carrefour, whose shelves reached 61% of the innovative products that were launched in the year.
On the other hand, Mercadona, which did not refer to any innovation, an “unusual” fact for Ignacio Larracoechea, president of Promarca (Spanish association of leading brand manufacturers in mass consumption). “It is a practice that is not very desirable either for the general interest or for the economy, since it works with many brands, but does not include their innovation. And if on top of not introducing innovation, you copy it, that is unfair competition," he indicated," stated the president. Lidl only referenced 4% of innovative products from manufacturer brands while Aldi and Dia reached 9%.
The report highlights that the innovations that were successful last year obtained 46% distribution while those that were not, only 24%.
It is the manufacturer brands that are consolidating for another year as the driving force of Spanish innovation. They are responsible for 88% of the total innovations introduced into the market in 2023, more than in 2022 and maintaining the line of the last 13 years. The manufacturers that have made the most innovative launches this year are Lactalis (food), Suntory (beverages), P
Valencoso, however, highlights that in the context of rising prices in recent years there has been a "very large increase in private label products due to the change in assortment on the shelves, which, added to an inflation environment, has caused it to grow." in a very important way." This eliminates space for the most innovative manufacturer-branded products.
In this context, the president of Promarca, Ignacio Larracoechea, has demanded that measures be taken to promote innovation, which is a "growth lever" for mass consumption after the low reference of these products on the shelves by Mercadona, Lidl, Aldi and Dia.
”It is common sense to support innovation in the mass consumption sector, not supporting it may be interesting for an operator, but not for the economy. We see a kind of obstruction that we cannot overcome from the distribution of limited assortment. Without the support of Mercadona, Lidl, Aldi and Dia it is very difficult to distribute 60% of the innovations. “No one expects a distributor to give 100% of the innovations, but at least 25%,” he assured.
"The ideal would be for us to work and cooperate between distributors and manufacturers to make this happen and if not, there are laws to try to correct it, but I prefer cooperation," stressed the president of Promarca.
