The unintentional loss of sales for an existing company’s product following the introduction of a similar product to the market.

As a marketing strategy, cannibalization refers to a curtailment in sales capacity, sales profit, or market share of one unit as a consequence of the introduction of a newly introduced product by the same producer.

In the context of a carefully devised strategy, Cannibalisation can be effective, by expanding the market, or optimising consumer demands.

See also:
Marketing strategy
Market share