IRI research shows that small companies now account for one-quarter of New Product Pacesetter dollar sales; Millennials heavily influence innovation trends
IRI® announced last year’s most successful consumer packaged goods launches in its 2017 New Product Pacesetters™ report, a CPG industry-recognized benchmark analysis of exceptional first-year new product sales success. Thousands of new brands hit retail shelves during 2017, with 49% of the top-ranking brands hailing from small manufacturers — defined as those earning less than $1 billion annually — and accounting for 26% of Pacesetter dollars. Overall, the top-selling 200 new brands captured cumulative year-one sales of more than $4.6 billion across IRI’s multi-outlet geography.
“Consumers are demanding products that are customized to their needs, and this type of targeted innovation continues to put small and niche companies on the New Product Pacesetter map,” said Susan Viamari, vice president of Thought Leadership for IRI. “Just five years ago, an estimated nine out of every 10 Pacesetters launched were extensions of existing brand lines. In 2017, 40% of food and beverage and 25% of non-food Pacesetters were brands entirely new to the CPG marketplace. This clearly demonstrates consumers’ willingness to try ‘unknown’ brands. Millennials, in particular, are more moved by experiences and solutions to their needs and less likely to purchase based solely on brand name.”