Emerging Markets Take the Lead in FMCG

Go where the growth is and that means leaving the US and Europe and heading toward the Middle East, Africa and other fast-growing economies, according to Kantar Worldpanel's fifth annual Brand Footprint. In fact, emerging market spend on FMCG grew by $34 billion in 2016, up 6% vs last year, while developed markets sales were flat. 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 today launches its annual Top 50 ranking of the world’s most chosen FMCG brands.



“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,” said Josep Montserrat, global CEO, Kantar Worldpanel. “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.”


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%). Yet, results in Happi's market's were mixed. the health and beauty category suffered the biggest slowdown in 2016 with just 1% growth, while home care performed best with 4% growth. Meanwhile, the food and beverages sectors achieved 3% growth each, which is in line with the global average.


For the fifth year in a row, Coca-Cola remains the world’s most chosen brand, according to Kantar. However, Colgate is the second most chosen brand in the ranking and is the only brand chosen by more than 50% of the global population. Furthermore, Dettol is the fastest rising brand in the ranking, breaking into the Top 50 for the first time; and Sunsilk is new in the Top 10 with a 12% rise in Consumer Reach Points.


Other key Kantar findings are that each branded consumer decision is worth $1.92 and local brands account for 72% of FMCG market growth in 2016.


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 US 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.