Nearly one third of brands launched in 2022 were discontinued by the end of 2023, revealed market research company Euromonitor International.
The findings came from Euromonitor International's new artificial intelligence (AI) powered Passport Innovation platform, which monitors e-commerce data and tracks the product lifecycles of newly launched brands across markets and online retailers to inform decision-making on product innovation.
In 2023, Euromonitor detected more than 4,000 new brand launches and over 33,000 new sub-brand launches across the 32 global markets, 50 categories and online-retailers on its radar. From 2021 to 2023, analysts watched more than 11,000 new brands and some 105,000 sub-brands launch on to the global market.
Most new launches were line extensions for brands, with almost 3,000 new sub-brands on average launching each month. Overall, Euromonitor analysts identified that there is a less than 60% chance new products will survive in the market in the long term.
The super six countries of product innovation - the US, Germany, India, France, Brazil, and the UK - contributed to more than 50% of all new brands and sub-brands identified by Euromonitor's Passport Innovation platform in 2023. The US dominated innovation activity in 2023, with 16% of all detected new brands and sub-brands in 2023, followed by Germany with 9%.
With its vast and varied population and significant disposable income, the US stands out as a prime market for testing new products before expanding into others. It offers attractive opportunities for companies seeking to gauge product viability and consumer interest.
Euromonitor International's Passport Innovation product will equip businesses with the unrivalled ability to track a product's lifecycle from roll-out to phase-out with real time information. The artificial intelligence-powered (AI) database will empower businesses to identify and track new brand and sub-brand launches from January 2021 onwards.
The categories covered are drinks including hot, alcoholic, and soft drinks; food and nutrition including packaged food; health and beauty including consumer health, beauty and personal care, and tissues and hygiene; and home products covering home care and pet foods. Brad Borgman, Chief Innovation Officer at Euromonitor International, said: "We have been investing in large language models and have developed a state-of-the art database that identifies and tracks new product launches with unprecedented speed.
“It is a unique platform where companies can learn how these new products proliferate across retailers, countries, categories and see how they evolve in terms of attributes. Businesses will also be able to gain unparalleled insight into consumer purchasing preferences and assess how brands are responding.
“We can provide detailed answers to questions on product attributes and features, brand expansion and decline, markets with most new product launches and timings, product testing, and the players in the market that most frequently launch brands." Stella Vatcheva, Senior Head of Practice for Innovation at Euromonitor International, said: "This is the only NPD platform that exclusively monitors e-commerce data, where most products are likely to launch first.
“Our Passport Innovation clients will be the first to know which new brands are failing or succeeding, with up-to-date information on whether a new product is expanding or being dropped by e-retailers. They will be able to visualise a new product's evolution over time, with detailed summaries of attributes and positioning."
