It is one of the main conclusions of a recent study, Pulse of innovation in FMCG, carried out jointly by the consulting firms Lantern and IRI to learn more about the situation of innovation in FMCG in the food and beverage industry in Spain, and which has had the participation of CEOs and CMOs of fifty-six manufacturers – Danone, Osborne, Raventós Codorníu, Chocolates Valor or Florette, among others— and of the twelve main retailers in our country.
The study highlights that, after the impact of COVID-19, the situation in the FMCG sector of food and beverages has improved during 2021 with the return to normality and the implementation of hybrid consumption models. 59% of manufacturers consider that this year their sales have not been impacted or have benefited from the pandemic, compared to 53% who said so in 2020. In the case of generalist distributors, the impact on their business It has also been more positive than last year, and no distributor considers that this year their sales have been negatively impacted by COVID-19, in contrast to 2020, when 35% considered it.
Innovation in Mass Consumption
In this context, innovation has become a priority: 52% of the manufacturers surveyed affirm that they have increased the effort to innovate in response to the current situation, compared to 14.3% who affirm that they lack the resources to develop R&D projects. In addition, up to 64.3% ensure that innovation is an absolute priority for the company’s management.
Specifically, in 2021 these efforts to innovate are concentrating above all on promoting existing products and brands (70%), new products (64%), new sales channels (46%) and new geographic markets (38%). In addition, a third of companies are tackling projects outside the core of their business and 21% are working with the startup ecosystem.
When it comes to decision making, the study reveals that manufacturers are increasingly relying on data to guide their innovation strategies. In fact, 79% of those surveyed claim to rely on quantitative market research and 75% claim to do so on qualitative research, compared to 55% and 53% who opted for these methods respectively during 2020. An incipient one also stands out. 2% who are supporting their strategies in the use of artificial intelligence.
Finally, for most manufacturers, the success of these innovation processes depends on the incorporation of the consumer and the collaboration with distributors. The objective is to have better insights, shorten development times and implement a circular economy approach with a clear priority for sustainable packaging and the revaluation of waste. In this sense, most distributors have indicated that collaboration between manufacturers and retailers and joint work between both is essential for innovation to be more successful.
Qualification
The state of innovation in FMCG in the food industry in Spain
Description
Innovation is one of the key levers for the development of the FMCG industry in Spain, especially at the present time with a relative return to normality, in which the different market players consider how they can boost their businesses .
Author
Gastronomy Journal