The "New & Improved" label indicates the the product is free of the plastic microbeads. Obama signed a ban to all plastic microbeads in daily products back in December 2015, to be effective in January 2018 (this leading practice has now been recognized and followed globally). Neutrogena only had 2 years to re-create the exfoliating microbeads in plastic-free formula, and they did a great job!
In all honesty, I cannot tell the difference in terms of how the new formula feels or smells compared to the old one. It's really the same great product now with bio-degradable microbeads that helps the environment from being polluted by 8 trillion beads across the U.S. daily.