If you’ve ever been through a store or browsed and wondered, “Why do many new products disappear after a few months?” You are not alone.

Every year, companies launch thousands of new products – from snacks and gadgets to apps and cars – but most disappear in peace.

The big question is, what percentage of these new products fail?

Let’s break down the numbers, understand why this happens, and see what businesses can do to avoid being part of these figures.

Table of Contents

1. Short Answer: 80-95% of New Products Failed
2. Why Do New Products Fail?
3. Real-World Examples of Product Failures
4. How Can Companies Avoid Failure?
5. Is Failure Always Bad?
6. Final Thoughts

Key Stats

1. 80-95% of new products fail in their first year.
2. 85% of consumer-packaged goods (such as food, drinks, or toilets) fail to survive more than 12 months.
3. 72% of failed products ignored customer feedback during development.

Short Answer: 80-95% of New Products Failed

Let’s start with the facts. Over the years, about 80-95% of new products fail in their first year. Trends of the previous decade indicate that little has changed. For example, Nilsen’s 2023 report found that 85% of consumer-packaged goods (such as food, drinks, or toilets) fail to survive more than 12 months. Tech products do not rent better, and failure rates are about 90% of the rates.

Why such high numbers? The reasons range from poor planning to bad timing. Brands can always hire professional business plan writer for better outcomes.

Source: (netsmartz.com), (tremendous.com), (kaizen.com), (nielseniq.com)

Why Do New Products Fail?

Failure isn’t random. Most flops share common problems. Here are the top reasons:

Nobody Asked for It

Companies often assume they know what customers want. But without asking, they risk building something nobody needs. For example, Google Glass (smart glasses) failed in 2015 because users saw no practical use. A study found that 72% of failed products ignored customer feedback during development.

Bad Pricing

If the price is too high, customers won’t buy. Price too low, and profits vanish. Take Juicero, a $700 juicer that flopped in 2017. Customers realized they could squeeze the company’s pre-packaged bags by hand—no machine needed. One should always look out for investor business plans so they can invest the right amount.

Weak Market

Great products also fail if people do not know that they exist. There were confused ads in Crystal Pepsi (a clear cola since the 1990s) that did not explain his purpose. It disappeared in a year.

Rush

In the rush to defeat competitors, companies leave the test. Samsung’s Galaxy Note 7 Phones began to explode in 2016 as the batteries were not properly tested. Recall costs to Samsung more than $5 billion.

Disregard

Markets are quick to crowd. For example, Quibi (a short-form video application) began in 2020 but died in 6 months. Why? It competes with TikTok, YouTube, and Netflix but offers anything unique.

Source: ​(zero100.com), (professionalprograms.mit.edu​), (opticsdan.com)

Real-World Examples of Product Failures

Let’s look at three famous flops and why they crashed:

1. New Coke (1985)

In 1985, Coca-Cola replaced its original formula with “New Coke.” Customers revolted. The company hadn’t realized how emotionally attached people were to the old recipe. Within months, they brought back the original as “Coca-Cola Classic.”

2. Microsoft Zune (2006-2012)

Microsoft’s Zune music player was meant to rival Apple’s iPod. But it launched years later with no standout features. By 2012, it was discontinued.

3. Amazon Fire Phone (2014)

Amazon’s first smartphone had a “3D” screen gimmick but lacked apps and was priced too high ($650). It was discontinued within a year.

How Can Companies Avoid Failure?

While failure is common, smart strategies can tip the odds in a product’s favor:

Listen to Customers

Successful companies like Apple and Toyota spend months (or years) researching what people actually want. For example, Toyota’s Prius hybrid car succeeded in the 2000s because it solved rising fuel-cost worries.

Test Before Launching

Small-scale tests help fix problems early. Dollar Shave Club started by selling razors online to a niche audience. After refining their model, they grew into a $1 billion company.

Be Different

Stand out or get ignored. Oatly became a billion-dollar brand by focusing solely on oat milk when most competitors sold soy or almond milk.

Plan for the Long Term

Products need time to grow. Nintendo almost failed in the 1980s but bounced back by focusing on quality games (like Super Mario) instead of chasing trends.

Is Failure Always Bad?

Not always. Many companies learn from mistakes. For instance:

1. Apple’s Newton PDA (1993) was a flop, but its ideas led to the iPhone.
2. McDonald’s Arc Deluxe Burger (1996) failed but helped to create successful things like McWrap.

Failure teaches businesses what not to do next time.

Final Thoughts

80-95% of new products still fail, companies that are successful often follow the simple formula: solve a real problem, listen to customers, and not cut corners. Opt for e2 visa business plan so you can ensure a safe future for your business. Because, you know, for every 10 products that disappear, 1 or 2 will stick around – and that is what makes efforts valuable.

The next time you find a new product, ask yourself: “Does this problem solve? Or will it be gone by next year?” The answer might surprise you.