What does cannibalisation mean?
Cannibalisation is a noun describing the process by which something consumes or displaces another thing that is closely related to it. Its dominant modern use is commercial: when a company launches a new product that draws sales away from one of its existing products rather than attracting new customers, analysts call this product cannibalisation. A phone maker's cheaper new handset, for example, may erode demand for its previous flagship model. The term also has a technical sense — cannibalising equipment means removing serviceable parts from one machine to repair another, common in engineering, aviation, and military settings where spares are scarce. Though derived from the word cannibal, the term is entirely figurative and carries no literal connotation; in business writing it is generally negative, since lost internal sales represent missed revenue, though some strategists argue that controlled cannibalisation is preferable to losing market share to competitors. It is a staple of marketing reports, earnings discussions, and strategic planning.
nounThe act or process of one product, business unit, or entity taking sales, customers, or resources away from another related one; also the practice of salvaging parts from one machine or item to keep another working.
- The reduction in sales or demand for one product caused by the introduction of another product from the same company (business/economics).
- The removal of usable parts from one piece of equipment to repair or maintain another (engineering/technical).
"The company's new electric model cannibalisation of its own petrol cars was a risk the board accepted willingly."
"Analysts warned that the budget airline's new long-haul routes would lead to cannibalisation of its existing short-haul business."
"Mechanics in the depot routinely practised cannibalisation, stripping retired trucks for spare parts to keep the rest of the fleet running."
The plural is rare in everyday usage; the uncountable singular is far more common even when referring to multiple instances.
"Several cannibalisations were recorded across the product line last quarter."
Cannibalisation borrows its name from man-eaters — but in boardrooms it describes companies eating their own products alive.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Etymology of cannibalisation
Cannibalisation derives from cannibal, which entered English in the mid-16th century via Spanish caníbal, itself adapted from Carib, the name of the indigenous Caribbean people whom early European explorers believed practised ritual cannibalism. The figurative verb cannibalise arose later, first applied literally to the stripping of machines for parts, before extending into economics and marketing in the 20th century to describe one product consuming the sales of another. Related forms include the noun cannibal, the adjective cannibalistic, and the American-spelled variant cannibalization.
Related word forms
How cannibalisation is actually used
Primarily used in business, marketing, and economics contexts for the sales sense, and in technical/military contexts for the parts-salvage sense. The spelling with '-ise' is standard in British English; American English uses '-ize' (cannibalization). The word carries a neutral-to-negative connotation in business — cannibalisation is usually something firms try to measure and minimise, though deliberate self-cannibalisation is sometimes praised as forward-looking strategy.
Easily confused with cannibalisation
Cannibalisation is the British spelling with an 's', while cannibalization is the American spelling with a 'z'; both refer to the same concept.