The number of economy products launched in the UK was higher than that of premium launches for the first time in 2012, according to new research from Mintel.
The market analyst found that economy launches accounted for 9% of total food and drink new product development (NPD) in 2012, while premium launches made up 7%. In contrast, in 2008 premium launches accounted for 9% of NPD, while economy was just 2%.
“The UK economy has struggled to see market recovery and consumer disposable income has remained under pressure,” said Mintel director of innovation and insight David Jago. “This has given buoyancy to the trend for food and drink brands and grocers to push their value credentials to the foreground. The largest share of products with economy claims is driven primarily by significant private label investment.”
The news came as no surprise to Linda Williams of Broadway Premier in Edinburgh, who has seen a strong pull towards economy lines in her store. “People are going towards the value and budget ranges more and more so we are actually delisting some branded lines altogether,” she said.