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Chart of the Month: Innovation Towards Sustainable and Consumer-centric Approaches

3/28/2024
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Innovation strategies play a vital role in fostering growth and competitiveness through new product launches, sub-brands, product and market expansion. In 2023, over 27,000 new brands and sub-brands were launched online across the 50 most dynamic fmcg categories, according to Euromonitor’s Innovation Tracker*. This in turn can help companies aim for market differentiation, cost reduction and risk mitigation. According to Euromonitor’s Voice of the Industry Survey of over 1,000 professionals in 2023, 45% cited sustainable solutions as innovation plans their companies are pursuing in upcoming years.Chart of the Month March 2024

Addressing consumers’ sustainable living concerns, Cervepar, from Anheuser-Busch InBev Group, launched Bud66 in a returnable container, being the first premium beer to do so in Paraguay. In addition, the new product comes at a lower price point, in response to consumers’ recent loss of purchasing power due to inflation. Informing consumers about product features that speak to sustainable solutions is another consumer-centric approach, as certifications from independent agencies can help validate sustainability claims and build brand credibility. For example, the platform Provenance, based in London, validates claims in Food and Beverages, as well as Beauty and Personal Care categories. Thus, the platform allows Direct-to-Consumer channels and retailers to publish certified green claims, where consumers can avoid greenwashing and look for products based on their values and preferences, such as cruelty-free, protecting nature, supporting communities, and others.

Alignment to consumer values is the second most important topic of innovation plans for industry professionals. Innovation tied to consumer values can look different across sectors, but in general, it helps brands to build trust, consumer loyalty and market reputation.

As survey results show, innovation plans are not only about advanced technological solutions. It also involves responding to sustainable demands and adapting to consumer preferences. Thus, brands should embrace the opportunity to rethink market strategies and explore new avenues for growth, leveraging consumer insights to stay agile and relevant in a rapidly evolving marketplace.

Read our article Monitoring NPD to Understand Innovation trends in Consumer Health for more analysis on products and brand launches in the industry. To learn more about tracking new brand and sub-brand launches across the global digital shelf, visit our Innovation product page.

Stream our webinar, 2024 Consumer Trends to watch, for in-depth insights on lifestyle and digital consumer trends in 2024.

Note*: Based on data available as of 6 March 2024. Data exclude brand expansions on existing brands and marketplaces.

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