Coca-Cola remains the world’s largest fast-moving consumer goods (FMCG) brand for the fourth year in a row despite losing ground to the global backlash against sugar, according to Kantar Worldpanel’s annual Brand Footprint report.
Of the top ten local FMCG players growing fastest in value, seven of them are food brands. Snack and convenience food brands performed well, as consumers increasingly turned to FMCG brands to satisfy hunger between meals, while Sprite was the fastest growing beverage brand in the top ten.
The report uses Kantar Worldpanel’s Consumer Reach Points (CRP) metric, which measures how many households around the world are buying a brand – or its penetration – and how often – its frequency – to determine global consumer purchasing behaviour.
The list of the ten largest beverage brands is topped by Coca-Cola and Pepsi, who also dominate the rest of the top ten with three brands apiece. Nestlé has two brands in the top ten, while Mondelēz and Unilever has one each. The list of the top ten food brands is more evenly distributed, with only Nestlé and The Kraft-Heinz Company appearing in the list more than once.
In other findings, local brands are closing in on their multinational competitors by growing value at nearly twice the rate of global brands for the third year running, Kantar Worldpanel said. The total value of the FMCG sector grew by 4.7% in 2015; local players grew by 6.2% while global brands only increase their value by an average of 3.4%.
Brand choices are dominated by local players in terms of both the number of brands available as well as the number of times they are chosen, the market insights company added, particularly in the food and beverage industry.
Local brands are especially prevalent in Asia, Latin America and also parts of Europe such as Spain. Most notable, however, is China, where local brands comprise 75% of shopper decisions followed by Indonesia (61%) and India (57%).
Kantar Worldpanel director Alison Martin explained: “Where modern trade (supermarkets and hypermarkets) is the dominant distribution channel for many global brands, the opposite is true for local brands, who distribute through more traditional methods and are thriving in the emerging markets, which are naturally showing higher rates of growth.
“For local brands, the world is their country: they look nationwide rather than just at tier-one or tier-two cities. Not only are there significantly more local brands across the world, it is generally the case that they will reach more shoppers in more remote parts of their market, working in closer concert with consumer need. Where budgets are tight, they will adjust price points or pack sizes. In large emerging markets such as China, India and Indonesia, many consumers see local brands as not only familiar, but also more affordable and widely available.”
Josep Montserrat, global CEO of Kantar Worldpanel, added: “The focus of this year’s Brand Footprint report extends beyond the top 50 ranking, as the pressure from local brands continues to bear on their global competition. While reflecting the growth of smaller and local brands, we also scrutinise more niche players, looking at both local brands and brands poised to break into the ranking.”
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