A record number of successful new non-food products were introduced in 2002.
2002 was a highly active and successful year for new CPG product introductions in non-food categories. 118 new non-food products with over $7.5 million in sales were introduced last year – 34% more than the prior five year average. In addition, more of these products cleared the $20 million mark than in any previous year. Despite a weak economy, manufacturers are making major investments in new product development, and consumers are rewarding these efforts.

New “self care” products dominate non-food new product activity.
Representing 56% of Non-Foods Pacesetters, a broad range of successful new self care products (eg. hair care, dental care, deodorant) hit the shelves last year. Many of these products address the needs of an aging America by offering whiter teeth, renewed hair color and younger-looking skin. Convenience (eg. Listerine PocketPaks) and improved results (eg. (Crest’s Spinbrush) were also major benefits provided. Four of the top ten new products were dental care, driving over $500 million in year-one sales combined. Self care has remained a top new product area for the last several years and will be for the foreseeable future.

House care new product development stalled.
After a burst of new product activity in 2000 and 2001, house care products are conspicuously few among the 2002 Non-Food New Product Pacesetters and comprise only 8% of the total. The inactivity is more likely a lull than an end to a great run. Given consumers’ phenomenal response to “more effective” technological innovations in shower cleaners, air fresheners, and magical mops in recent years, it will only be a matter of time before the “next big thing” emerges.

Manufacturers continue to reap value from existing equities via line extensions.
Nine of the top ten Pacesetters are line extensions. The proportion of new products that are totally “new” (ie invented for CPG channel distribution or cross-over from other channels) has decreased from 20% in the 1990s to just 10% over the last few reports. Manufacturers have focused in recent years on leveraging investments in existing brands and on keeping these brands fresh and appealing to consumers, rather than taking on a much riskier task of launching a completely new brand.

2003 is off to a promising start.
Several “up and coming” new products appeared on the radar screen in 2002 (but have not yet completed a full sales year) and are likely to make a big splash in the coming year—driving growth in mature categories. Led by Pampers Cruisers and Pampers Easy-Ups – each projected to be blockbusters, the baby care category will receive a push this year. Dental Care will extend its fantastic new product performance trend with products such as Colgate Simply White, which had already reached nearly $60 million in just four months. Other categories to watch include razors (Gillette’s Mach3 Turbo) and batteries (Energizer Max).