Cannibalism, also referred to as product or market cannibalism, is a phenomenon that occurs when a company introduces a new product or service that inadvertently competes with and diminishes the sales of its existing offerings. In essence, the new product "eats" into the demand for the older product, resulting in a decline in sales volume, revenue and market share.

While some degree of cannibalism is often anticipated and even accepted with new product launches, companies typically weigh the potential risks and rewards carefully. Cannibalism can have both positive and negative effects on a company's bottom line.

On the positive side, it can help a company maintain its market share and prevent competitors from gaining ground. Additionally, the new product may attract new customers or offer higher profit margins, offsetting the losses from the older product. On the negative side, cannibalism can lead to decreased overall profitability if the new product does not generate enough additional revenue to compensate for the lost sales of the older product.

Cannibalism can be either intentional or unintentional. Intentional cannibalism occurs when a company deliberately introduces a new product to replace an older one, even if it means sacrificing some short-term sales. Unintentional cannibalism, on the other hand, occurs when a company fails to anticipate the impact of a new product on its existing product line.‍