Fewer Food Products Introduced

January 5, 2000

New food product introductions declined for the third consecutive year in 1998, reversing the trend that prevailed during the previous three decades. Food introductions declined by 11% in 1998, the USDA report says.

The 1998 total introductions were 11,037 compared with 12,398 in 1997. The decline followed a 7% drop in 1997 and a 21% decline in 1996. In 1998, says the report, new product introductions were 35% fewer than the all-time high in 1995 of nearly 17,000 food products.

New product introductions include different sizes, colors and flavors; seasonal and regional items, and products sold specially in gourmet, health food and drug stores. Many introductions are only changes in size and color not new in the sense of being "truly innovative," says USDA.

Despite the introduction of 116,000 products since 1990, total products stocked on grocery shelves has increased only slightly, suggesting that new products replace existing products or are removed from grocery store shelves soon after the introduction.

Except for soups, all food product categories declined in introductions when compared with 1995. Bakery product introductions declined from 1,855 to 1,178; beverage introductions declined from 2,854 to 1,547.

New condiment introductions declined from 3,698 in 1995 to 1,994 in 1998. Introductions of desserts, entrees and processed meats increased during the last three years, but introductions in 1998 were still fewer than in 1995.

The entire report can be found on USDA's web site at http://www.econ.ag.gov/epubs/pdf/foodrevw/sept99/frsept99f.pdf.