Kantar Worldpanel Finds Emerging Markets Now Account For More Than Half Of FMCG Spend
Kantar Worldpanel has published its latest Brand Footprint report, in which the retail analytics firm has revealed that emerging markets now account for more than half (51%) of global spend on FMCG products, up from 48% three years ago.
The research, which measures the 'most chosen' brands by shoppers worldwide, found that emerging market spend on FMCG rose by 6% last year, or $34 billion, while developed market sales were flat. Russia (+14%), Sri Lanka (+9%) Indonesia (+6%) and the Philippines (+6%) were all key drivers of this growth.
At the same time, however, the US (0% growth) and Europe (+2% growth, down from 4%) saw a decline.
Best Of The Best
The research found that the 'most chosen' brand, for a fifth year running, is Coca-Cola, with a global penetration of 42%, which is followed by toothpaste brand Colgate - the only brand chosen by more than 50% of the global population. Dettol is the fastest rising brand in the ranking, while Sunsilk is a new addition to the top ten.
“Being chosen by more people, more often, is how a brand grows," said Josep Montserrat, global CEO, Kantar Worldpanel. "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."
Consumer Reach Points
The Brand Footprint research uses a metric called Consumer Reach Points, or CRP, and indicates that there are now 21 brands around the world that are chosen more than one billion times by consumers. Within the top 10 brands alone, Sunsilk (+12%), Colgate (+1%) and Nestle (+1%) have grown their CRP and spend growth over the past year,
In addition, the research indicates that local brands accounted for 72% of the total FMCG market growth last year. Local brands have gained a 1.1% share of the $2 trillion-plus global FMCG market over the past three years, while the price gap between global brands and local brands has pretty much disappeared across the board.
“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," Montserrat added.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.