Food innovation: the keys to recovery according to Circana

At SIAL Talks 2024, Emily Mayer, Director of Research at Circana, shared a clear-headed but hopeful analysis of innovation in mass retail. Despite a challenging environment, clear levers are emerging to return to growth

Emily Mayer’s presentation at the SIAL Talks kicked off the day with a crucial question: why is food innovation struggling to take off in mass retail? In 2023, new products accounted for only 0.6% of consumer goods sales, the lowest figure in the last five years. But far from painting an alarmist picture, the Circana representative highlighted the opportunities for recovery.

While the past few years have slowed innovation—between product range rationalisation, inflation and refocused budget priorities—new positive signs are emerging. Consumers are becoming increasingly curious, with 25% saying they actively seek out new products. And according to Circana’s projections, 2024 could mark a turning point: figures for the first half of the year show a 50% increase in sales linked to innovation compared to the previous year.

More open-minded consumers seeking meaning and pleasure

Three major trends are now driving food expectations: emotion, connection and attention. Consumers are no longer just looking for new products, but products that tell a story, provide pleasure and fit into a more responsible lifestyle.

This dynamic is already evident on the shelves: indulgence products such as chocolate, biscuits and confectionery continue to perform well, even in times of inflation. Internationally inspired products such as plain tortillas, Asian sauces and Mediterranean cheeses are also gaining ground, as are spreads and convivial aperitif products. Finally, functional categories – energy drinks, yoghurts and protein bars, and plant-based alternatives – are experiencing steady growth, reflecting a heightened focus on health and well-being.

For Emily Mayer, it is by responding to this dual expectation of pleasure and responsibility that brands can regain a clear competitive advantage.

In 2025, inflation remains a challenge, but also a catalyst for innovation

Despite persistent inflationary pressures in early 2025 — with prices up 2.5% in the eurozone according to Eurostat, and up to 15% for some sugary drinks in France — consumers have not deserted the shelves, but are becoming more selective.

In this context, some retailers are reinventing their offerings, focusing on local brands, accessible formats and high value-added products. When well thought out — clear, visible and well positioned in terms of price — innovation becomes a strategic tool for building loyalty and surprising consumers.

The brands that are performing well today are those that have focused on targeted, consistent and meaningful launches. For Emily Mayer, the key lies in a ‘less but better’ approach: fewer launches, but better executed, with particular attention paid to the point-of-sale experience. This is a course that the industry seems ready to follow.

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