Rise of own-label casts shadow on innovation

- Last updated on GMT

Related tags: New product development, Brand

Innovation in cakes, biscuits and confectionery is under threat from the rise of retailer own-label products in the midst of the recession, according to David Jago, Mintel innovation and insight director.

"Private [own-] label now represents a third of all NPD (new product development),"​ said Jago. "In sugar confectionery, half of all retail development in 2010 was in retail private label, so it's proving to be quite a threat to brands in the category." ​In cakes, 43% of NPD occurred in own-label products.

He said the number of new sugar confectionery products continued to decline overall, but the reverse was true for biscuits.

Aside from retailer own-label, the number of new ethically traded products had also risen dramatically. "There has been huge growth in ethical and sustainable products. This has been one of the biggest drivers and there has been far more Fairtrade activity in private label."

However, he said that since only 46% of consumers considered Fairtrade to be an important category, it had much more potential.

Related topics: NPD

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