FDBusiness.com

Emerging Markets Overtake Developed in FMCG Spend

 Breaking News
  • British Brewers Decrease Their CO2 Emissions by 42% Total CO2 emissions from the UK’s brewing industry have fallen by 42% in the last decade (2008 to 2018) – a reduction of 202,952 tonnes – according to new research conducted by the British Beer & Pub Association (BBPA). The research also found that the energy used to brew a pint of beer in the [...]...
  • Small Irish Snack Manufacturer Secures Major Contract With Tesco Pinkfinch, a County Down-based fruit snacks supplier, has secured a major contract with Tesco Ireland, which will see an estimated 100,000 bags sold annually. From launching his business in his parent’s spare bedroom five years ago,  Pinkfinch founder Michael Heaslip (pictured) has grown his innovative product line across Ireland, the UK, Europe, and the Middle East,  with [...]...
  • UK Supermarkets are Struggling to Grow The latest grocery market share figures, published by Kantar, show year-on-year supermarket sales were flat during the 12 weeks to 11 August 2019 as the tough comparisons with 2018’s strong summer continue. The memory of last year still looms large for retailers and this summer’s comparatively poor weather, combined with low levels of like-for-like price [...]...
  • Tickets Still Available For 2019 Irish Food & Drink Business Awards Some tickets are still available for the 2019 Irish Food & Drink Business Awards presentation ceremony and gala dinner to be held at the Citywest Hotel in Dublin on the evening of Thursday, 5 September 2019. The winners of the 2019 Awards will be named at the event. The prestigious awards programme, which was first introduced [...]...
  • Nestlé UK Launches New On-trend Flavours Nestlé has introduced two new on-trend flavours to its much-loved Munchies brand in the UK and Ireland. Available in 101g sharing bags, new Munchies Chocolate Fudge Brownie and Munchies Cookie Dough are the first new Munchies products since 1996. The new flavours were created at Nestlé’s confectionery sites in York and Fawdon, Newcastle. Munchies Brand Manager [...]...

Emerging Markets Overtake Developed in FMCG Spend

Emerging Markets Overtake Developed in FMCG Spend
June 14
09:00 2017

Emerging markets now account for 51% of global spend on fast-moving-consumer-goods, rising from 48% in just three years. This is the key finding from the latest Kantar Worldpanel Brand Footprint report, which includes its annual Top 50 ranking of the world’s most chosen FMCG brands.

Kantar Worldpanel’s analysis also shows that, with developed markets barely growing, emerging countries were responsible for all of the FMCG value growth in 2016, adding $34 billion to the global industry throughout the year. The countries contributing most to this value growth include Russia (14%), Sri Lanka (9%) Indonesia (6%) and the Philippines (6%).

FMCG growth rates by region

Global grocery spend growth slowed down to 3% last year, dropping from 4% growth in 2015, but this varies significantly by country. The Africa and Middle East regions enjoyed an 8% value growth in FMCG. Headline sales also grew quickly in Latin America with year-on-year spend increasing by 9%—largely buoyed by soaring inflation.

The United States and Europe continued to suffer dampened growth last year: the former saw growth rates flatline, down from 1% growth in 2015; the latter fell from 4% to 2% growth in the same period. Asia suffered the most profound slowdown last year, however—falling from 6% value growth in 2015 to 2% in 2016.

FMCG growth rates by category

The health and beauty category suffered the biggest slowdown in 2016 with just 1% growth. Home care performed best with 4% growth, while the food and beverages sectors achieved 3% growth each – in line with the global average.

The value of choice

This year, Kantar Worldpanel has quantified the value of the average branded consumer decision: that is, the average cost paid by shoppers each time they choose a brand.
The average branded decision at the shelf costs the consumer $1.92, with the value of that decision varying widely by category. Decisions to buy food brands are generally worth less than health and beauty products, but are purchased more frequently.

Local brands and global brands

The study also shows that local brands grew by 3.9% in 2016, while global brands grew by 2.6%. Local brands are particularly strong in the food and beverage categories, being chosen in 74% and 67% of purchases respectively. Local brands have gained 1.1% share of the $2 trillion plus global FMCG market over the past three years.

In 2016, the price gap between global and local brands has narrowed to the point of disappearing. No longer does being a global brand automatically command a price premium. Global brand owners are having to work harder to convince consumers that a global choice offers additional reassurance of quality and confers prestige.

Brand Footprint: a snapshot

Brand Footprint measures consumer choice through a metric called CRP (Consumer Reach Point). There are now 21 brands which are chosen more than 1 billion times. Within the top 10 brands alone, Sunsilk (+12%), Colgate (+1%) and Nestle (+1%) have grown their CRP and spend growth over the past year – with Sunsilk a new entry to the Top 10 most chosen brands in the world.

Coca-Cola remains the world’s most chosen brand with a global penetration of 42%—in 9 countries, penetration rises to over 80% of the population. Dove attracted the most new households in 2016—14 million more households chose the brand in the last year.

Josep Montserrat, Global CEO, Kantar Worldpanel explains: “Being chosen by more people, more often, is how a brand grows. Understanding where to find the most valuable opportunities – whether from an emerging region with a growing population, or innovating to meet untapped needs in a more developed market – is critical for all brands. Through Brand Footprint, the largest and most comprehensive study of FMCG brands in the world, we seek to quantify the value of consumer choice and to share some of the best examples of the strategies brands have deployed to grow.”

About Author

mike

mike

Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 11, 2019Packaging Innovations & Luxury Packaging London 2019
  • October 1, 2019PPMA Total Show
  • October 17, 2019Future Food-Tech
  • November 18, 2019Plastics Caps and Closures Conference 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements