Innovation in FMCG product development is "thriving" despite the threat from private labels, states a recent report, listing Madri Lager as "standout success in the British market" apart from P&G’s Flash Dust Magnet, Walkers Reduced Salt Crisps and Fairy Max Power WUL among top 10 new product developments (NPDs) of 2022.
According to a new report by Kantar titled “The Great British Squeeze: Innovation Edition”, the top 10 new product developments (NPDs) of 2022 demonstrated a remarkable ability to resonate with households who consider themselves to be struggling financially. Seven out of the top 10 new product launches over-indexed with this group.
Leading the list of top NPDs is Madri Lager, a standout success in the British market. This beer’s popularity stems from its ability to transform an out-of-home experience into an affordable in-home indulgence. With its faux Spanish provenance, it allows shoppers to strike a balance between saving money and maintaining a premium vibe, states the report.
P&G’s Flash Dust Magnet disrupted the duster category, generating nearly £10.5 million in sales in its first year. This premium offering resonated with price-sensitive consumers, showcasing the power of well-crafted innovation.
The top 10 NPDs of 2022 also included Walkers Reduced Salt Crisps (HFSS compliant), Fairy Max Power WUL (premiumisation), Stella Artois Unfiltered Lager (change in flavour), Andrex C/C Mega Toilet Tissues (sustainability with less packaging), McVities Blissfuls Biscuits (snacking and treats), Cushelle Tubeless Toilet Tissues (sustainability), Walkers Wotsits Crunchy (snacking and treats), and Heineken Silver Lager (lighter flavour targeting younger shoppers).
Innovative packaging, marketing campaigns and the overall presentation played a crucial role. Brands that thrived in 2022 embraced unique and relevant ideas, and some even redefined their product categories.
Sam Hart, head of marketing insights for Kantar Worldpanel UK, said the struggling shopper group has experienced a consistent increase in size, from 14 per cent in May 2020 to 25 per cent in the latest data. As inflation rates soared and borrowing costs grew, the number of individuals finding it difficult to manage costs has nearly doubled.
"In such an environment, brands that can offer value to consumers without sacrificing quality are often seeing success and mitigating the pivot to private label. Additionally, brands need to communicate more effectively with consumers about the value they offer and be more transparent about their pricing. Struggling shoppers are willing to risk their hard-earned cash for new products, but brands have to get it right.”
