Store Brand Product Introductions Outpace National Brands

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June 1, 2010

Lynn Dornblaser

After several years of increases, new product launches in the U.S. declined 20 percent overall in 2009, however store brand new product introductions increased, according to new Mintel research.

In fact, store brand share of all new products increased from 16.6 percent in 2006 to 24.7 percent in 2009, according to Mintel.

“There’s less loyalty to brands, because benefit loyalty is replacing brand loyalty,” Lynn Dornblaser, director, CPG trend insight at Mintel told attendees of the recent FMI Show. “Consumers want their needs met. If a [store brand] can respond, consumers are less likely to go back to brands.”

Between 2006 and 2008, U.S. new product launches showed a 23 percent gain, however the recession hit national brand new product development hard.

Current at shelf trends -- including simplicity, sustainability, value, and clear on-pack communication – offer store brands and national brands ample opportunities for new product development, Dornblaser added.

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