Grocery Spend in Emerging Markets Overtook Developed Markets for the First Time in 2016 - Kantar Worldpanel - Seite 2

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.