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Household and Personal Cleanliness Help Manufacturers Navigate Uncertain Year: IRI

See the brands on IRI's 27th annual New Product Pacesetters list.

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By: Christine Esposito

Editor-in-Chief

Information Resources, Inc. (IRI) has released its 2021 New Product Pacesetters, which includes top nonfood product launches. This is IRI’s 27th annual release of the report.

The unpredictability of the pandemic made the work of manufacturers even more difficult than in 2020, as covid-19 and the resultant behavior of shoppers ebbed and flowed during 2021. Despite this and other challenges, this year’s New Product Pacesetters delivered an impressive $6 billion in aggregate Year 1 sales across food and beverage and nonfood products, said IRI.

In nonfoods, top Pacesetters reflect the importance of a clean home and healthy body, according to IRI.

“This year’s New Product Pacesetters successfully ran the gauntlet of powering through a pandemic that first caused people to hunker down at home, and then start socializing in public again, only to hunker down again late in the year,” said Joan Driggs, vice president, Content and Thought Leadership, IRI. “Covid-19 generated trends that both helped and hindered growth trajectories. In-home stockups eased from 2020 levels, while concurrently, interest in new products representing beverages, frozen convenience foods, household goods and self-care resulted in healthy growth.”

The Top 10 Nonfood New Product Pacesetters for 2021, which range from cleaning products to personal care to wellness, are in the slider above (including launch year sales data as tracked by IRI). They include Microban 24Voltaren, Swan, Hello Bello, Goli Nutrition, Dawn Platinum PowerwashTide Hygienic CleanSuave Hand SanitizerFebreze Light and Wipe Out!.

According to IRI, innovative manufacturers leveraged interest in cleanliness to extend their product lines. For example, Suave evolved its established personal care brand and pushed into hand sanitizers, the No. 8 spot among nonfood Pacesetters. It also expanded a new subcategory of hand care with soaps and gels that don’t damage hands but are effective with Suave Essentials Hand Soap, which earned the No. 49 position. Clorox introduced No. 26 Clorox Laundry Sanitizer, a bleach-free additive that “kills 99% of bacteria and viruses, including covid-19.”

According to IRI, analyzing trends among New Product Pacesetter products is especially important since they typically comprise just 1% of total CPG dollar sales but are responsible for a very significant one-third of growth year over year. In 2021, Pacesetters accounted for 44% of total store growth with similar contribution from food and beverage and nonfood innovation, despite challenges ranging from supply chain issues to store space allocation and unpredictable demand.

Pacesetters’ first-year revenues mostly held steady with previous years, despite limited promotional activity. In nonfoods, median dollar sales totaled $17 million, the highest since 2017 New Product Pacesetters.

Large CPG companies, defined as those with over $6 billion in revenues, led in total dollar sales of Pacesetters products with 47%. Medium companies, those with $1 billion to $6 billion in sales, remained solid contributors, accounting for 27% of total dollar sales. Small companies, those with $100 million to $1 billion in sales, gained ground with 15% of total dollar sales, an increase over 2020.

IRI says its data indicates that in nonfood categories, while functionality remains supreme, consumers will likely explore new products. If products deliver on their original promise and then offer a bit more, consumers are more likely to appreciate the value add.

Sustainability Matters

Sustainability is an attribute that impacts both food and beverage and nonfood categories. Hello Bello baby products earned the No. 4 nonfood spot, followed by The Honey Pot Company feminine products notched at No. 17.

Sustainability has grown to include a wider range of attributes, such as carbon footprint and water conservation. It has also grown as an increasingly important decision factor among consumers. Innovators should recognize the value of sustainability and how it contributes to a consumer’s overall impression of a product, brand and manufacturer.

IRI's full report can be accessed here
 

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