Brand longevity: A third of brands won’t last much longer than a year

By our African Marketing Confederation News Team | 2024

In the long term, less than 60 percent of new brands will survive, according to brand longevity data from Euromonitor International.

Nearly a third of brands launched in 2022 were discontinued by the end of 2023, according to data revealed by market research company Euromonitor International.  

Last year, says the company, it detected more than 4,000 new brand launches and over 33,000 new sub-brand launches across 32 global markets and 50 categories. 

The findings came from Euromonitor’s new AI-powered Passport Innovation platform, which monitors e-commerce data and tracks the product lifecycles of newly launched brands across markets and online retailers. This is to help inform important decision-making on product innovation. 

Overall, there is a less than 60% chance new products will survive in the market in the long term, according to the data. 

The ‘super six’ countries of product innovation – the US, Germany, India, France, Brazil, and United Kingdom – contributed to more than 50% of all new brands and sub-brands identified by the Passport Innovation platform in 2023. 

A third of new brands won’t last long on the shelves.

Photo: Greta Hoffman from Pexels

 

Innovation activity in 2023 was dominated by the US, with 16% of all detected new brands and sub-brands, followed by Germany with 9%. 

“With its vast and varied population and significant disposable income, the US stands out as a prime market for testing new products before expanding into others,” Euromonitor says in a media statement. 

“[The US] offers attractive opportunities for companies seeking to gauge product viability and consumer interest.” 

Product categories covered by the new Passport Innovation platform are: drinks – including hot, alcoholic, and soft drinks; food and nutrition – including packaged food; health and beauty – including consumer health, beauty and personal care, tissues and hygiene; and home products – covering home care and pet foods. 

Comments Brad Borgman, Chief Innovation Officer at Euromonitor International: “We have been investing in large language models and have developed a state-of-the art database that identifies and tracks new product launches with unprecedented speed.” 

Foundational branding pillars cultivate longevity 

According to the European Institute of Management and Finance, in the journey of branding the foundational pillars – emotional connection, sustainability and storytelling – serve as the bedrock for cultivating business growth and longevity.  

“By weaving these elements into the fabric of a brand, businesses can transcend mere transactions, fostering deep, meaningful relationships with their audience,” the institute says. 

“This holistic approach not only anchors the brand in the hearts of the global audience but also resonates on a local level, reflecting the universal and specific relevance of branding.” 

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