No health crunch on product innovation, says FDF

The economic downturn has not created a 'health crunch' when it comes to new product innovation, suggests research conducted for the Food and Drink Federation (FDF) by independent consultancy Mintel's Global New Products Database.

Based on its tracking of all new product launches in the UK grocery market, Mintel has discovered that nearly 250 reformulated products were launched in the first six months of this year - similar to the same period in 2008.

In all, over 700 product lines have been launched with new recipes since January 2007 - the equivalent of nine a week - more than in any other European country.

Mintel's report – Recipe for change – also suggests that total sales of healthier eating options in some key food and drink categories are now worth £8bn - and in some areas are growing at twice the rate of the market as a whole.

David Jago, director of Insight and Innovation at Mintel GNPD, said: "The amount of work still being undertaken suggests there is no immediate sign of a 'health crunch' here in the UK judging by the number of newly reformulated products appearing on supermarket shelves. Even if things slow down in the second half of the year, it is clear from our global research that UK manufacturers and retailers are still leading the way on reformulation."

Melanie Leech, FDF Director General, added: "Our sector's world-class capabilities in research and development have allowed us to tackle the complex task of changing the recipes of much-loved British brands without compromising on quality or taste.

"The recession is clearly forcing companies to reprioritise their investment decisions, and Government does need to be realistic about the pace at which our members can be expected to keep delivering new innovations in such competitive market conditions. 

"Nevertheless, our report clearly shows that our members remain totally committed to helping consumers eat more healthily - and reformulation is just one of the ways in which we will continue to make a real difference."

Words: Maria Bracken

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