Breakthrough product innovations are more than a blip on the consumer’s radar, they have staying power, and they capture the attention and embrace of shoppers across a wide spectrum.
It is a phenomenon that requires brands to advance from great idea to great product, and then support it with great activation.
A recent breakthrough innovation example: a cooking brand collaborating with a beauty/personal care brand to bring personal care products with delicious scents to a new generation of consumers, driven by a viral social media campaign and limited time offers. Dove + Crumbl succeeded by crossing categories and generational divides to bring a product to market in a creative, memorable way that grabbed consumer’s attention and addressed their needs.
Breakthrough innovations of 2025
Recently, International Dairy Deli Bakery Association (IDDBA) hosted a webinar to discuss Nielsen IQ’s 2025 Breakthrough Innovation Report. The mission of IDDBA is to empower and connect dairy, deli, and bakery professionals, helping them drive innovation and growth. In addition to this focus, IDDBA often provides insight that grocery retailers and suppliers can apply across all categories. Such was the case when the association welcomed Crystal Dawson, Vice President, North America Business Partner Cluster Leader of NielsenIQ, to present.
Dawson began by emphasizing the critical role of innovation in general, stating that “companies that continue to innovate tend to see on average two times greater growth overall than those who decide to maybe pause innovations.” She then turned to innovation in consumer-packaged goods specifically and described the criteria used by Nielsen IQ to determine its Breakthrough Innovation winners. This includes a requirement that products have been in the market for at least two years and have achieved at least 80% of their Year 1 sales in Year 2. “We ensure that it's a rigorous review process so that when we're making notes about something ‘breaking through’ and having staying power, we have the data to back up why they are chosen, ” said Dawson.
A list of the Breakthrough Innovation winners is available by accessing the IDDBA webinar, Unveiling Market Shifts: 2025 Breakthrough Innovation Insights. Aside from naming the specific winning products, Dawson revealed common traits seen in most if not all of the winners.
Great ideas
Product ideas were closely tied to consumer desires and reflected larger consumer trends, such as demand for “protein-forward” and “better-for-you” product offerings.
Great product
Products were not simply trend jacking, they were effective in meeting consumer needs. This was achieved through introducing iterative releases based on customer feedback, trend mining, and a close monitoring of social buzz.
Great activation
In terms of introducing products to the market, the breakthrough innovation winners embraced both targeted and broad activations. Many employed limited-time offers (LTO) to create excitement and urgency in targeted consumers.
Predicting 2026 breakthrough innovations
As part of her presentation, Dawson also offered a look ahead at the possible breakthrough innovations for 2026. Based on recent product launches there are several trends emerging that may very well carry this year’s breakthrough innovations. Many of these trends are supported by research released in IDDBA’s What’s In Store 2026 publication. These include:
Functional wellness
An increased demand for products that include functional ingredients – or food additives that increase the nutritional value of the product–has been taking hold for some time. It won’t be a surprise if this year’s innovations support protein-rich, fiber-rich, and digestive health diets.
Simplicity and trust
While functional ingredients support the physical health of consumers, there is also a need for improved mental and emotional health. Products that lighten the mental load of shopping and simplify decision-making will stand out on store shelves. This starts with product ingredients, but must be supported by clear labeling and fewer product choices.
Preventative health
What is not in a product is just as important as what is in a product. As with functional wellness, clear labels (and clean labels) will help shoppers more easily gain control over their nutritional health. The removal of unnecessary and potentially harmful additives is an emerging expectation of consumers, and they will be looking at the label to verify it.
Foods supporting anti-obesity medications (AOM)
The continued growth of AOMs is leading to an increased need for foods that support their use. As more consumers discover the life-changing benefits of AOMs, they will seek easy purchase decisions on products that are in line with doctor-recommended diets and serving sizes.
Innovation remains critical to breakthrough
Innovation is critical for brands that are competing for market share, which in turn makes it critical for retailers who seek to compete by providing new and innovative offerings. However, Dawson cautioned both brands and retailers to carefully consider how that innovation takes place and to what end. She emphasized the importance of tying innovation to consumer needs.
“Making sure that when you are innovating, no matter what type of innovation it is, please make sure it's rooted in consumer needs because that's where you're going to find the most likelihood of success versus innovating just for the sake of innovating, “ said Dawson.
As brands seek to develop and activate new, innovative products, retailers will face the challenge of selecting the right products that drive foot traffic, increase revenue, and strengthen customer loyalty. To meet this challenge, now more than ever, category managers will need solid market data and expert insights to inform their decisions.
To learn more about the Breakthrough Innovations of 2025 and What’s In Store 2026, visit IDDBA.ORG and its library of resources and expert insight.
