With evolving consumer preferences, fierce competition, and constantly shifting market dynamics, businesses that stay on top of product innovation gain a clear edge. Tracking new product development (NPD) allows companies to identify emerging opportunities, assess competitor strategies, and align internal development efforts with real-time market shifts.
Identifying winning innovation is essential
In a crowded market, knowing which innovations truly resonate is crucial. Over 97,000 FMCG products were launched in the e-commerce space across key categories and markets during 2023-2024, tracked by Euromonitor’s Innovation system. Around 75% remained available for purchase after 48 months, albeit to varying degrees, underscoring the difficulty in quickly identifying true disruptors amid the noise.
While many factors contribute to evaluating NPD success, there are some initial steps that can help narrow the focus to products worth deeper analysis. SKU count, reflecting variations in packaging size, format, and other product attributes, is an early indicator worth watching. Out of FMCG products launched in 2023-2024, only 3% featured more than 20 SKUs. SKU count reflects the number of consumer segments targeted, and the breadth of retail ambitions. It signals the underlying brand’s strategy, whether it's scale, testing the market, or product positioning.
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