Dive Brief:
While innovation continued at a level pace in 2020, the number of line extensions fell 29% compared to the previous three-year average, according to a new analysis by IRI. This is as consumption shifted increasingly to homes and shopping moved online.
Brands have adapted with a focus on new products that elevated self and societal care, indulgence and convenience. Small brands and private label also found opportunity to grab consumers attention and win their loyalty during the last year by demonstrating innovative thinking.
For the year ahead, IRI sees continued opportunity in these larger trends for brands to innovate in particular with plant-based, premium and health and wellness products. At the same time, they will be shaped by the new normal of consumer behavior, including more at-home cooking, the elevation of on-the-go convenience and frictionless shopping.