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Grocery Spend in Emerging Markets Overtook Developed Markets for the First Time in 2016 - Kantar Worldpanel
Emerging markets now account for 51% of global spending 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 today launches 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%).
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.
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.
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.
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 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.
Kantar Worldpanel's annual Brand Footprint study is based on research from 73 per cent of the global population; a total of one billion households in 43 countries across five continents-covering 75 per cent of the global GDP. As part of the study, Kantar Worldpanel tracks 200 FMCG categories around the world across beverages, food, health and beauty and home care.
Kantar Worldpanel's annual Top 50 ranking of the world's most chosen FMCG brands reveals which brands are achieving global success, providing insights to help FMCG brands set global targets more accurately and improve their global business growth.
It is set apart from other brand rankings by providing information on real consumer behaviour rather than attitude. Consumer Reach Points (CRPs) form the basis of the ranking. An innovative metric that measures how many households around the world are buying a brand (penetration) and how often (frequency), it provides a true representation of shopper choice.
To access the full global, regional, country and sector rankings and a complete index of the brands included in the Global Top 50, please visit www.kantarworldpanel.com/brand-footprint-ranking
This year's ranking analysed 15,300 brands and 1 billion households in 43 countries across five continents in the 12 months to
November 2016 .
The Brand Footprint publication is a Kantar Worldpanel initiative, and the ranking is created in collaboration with IMRB in
Bangladesh and Sri Lanka , with GFK in
Germany , Poland ,
Russia , Italy and
Turkey and with IRI in the US.
Kantar Worldpanel is the global expert in shoppers' behaviour.
Through continuous monitoring, advanced analytics and tailored solutions, Kantar Worldpanel inspires successful decisions by brand owners, retailers, market analysts and government organisations globally.
With over 60 years' experience, a team of 3,500, and services covering 60 countries directly or through partners, Kantar Worldpanel turns purchase behaviour into competitive advantage in markets as diverse as FMCG, impulse products, fashion, baby, telecommunications and entertainment, among many others.
For further information, please visit us at www.kantarworldpanel.com.
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Kantar is one of the world's leading data, insight and consultancy companies. Working together across the whole spectrum of research and consulting disciplines, its specialist brands, employing 30,000 people, provide inspirational insights and business strategies for clients in 100 countries. Kantar is part of WPP and its services are employed by over half of the Fortune Top 500 companies.
For further information, please visit us at www.kantar.com
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