- Local and regional FMCG brands account for 46 per cent of total FMCG spend in 2015 and over half of FMCG market growth (58%) is driven by local brands
- Growth not over for global brands: strong performers in the ranking include Colgate (adding the most shoppers to its portfolio), Lifebuoy, Lay’s and Dove
- Sunsilk continues to shine, particularly in emerging markets
- Coke remains the world’s most chosen brand
- Colgate is the only brand in the ranking with a global penetration over 50%
Local brands are closing in on their multinational competitors, growing value at nearly twice the rate of global brands for the third year running.
This is the key finding of the latest Kantar Worldpanel Brand Footprint report, which today launches its annual Top 50 ranking of the world’s most chosen FMCG brands.
Analysing one billion households across 44 countries in five continents and 300 billion shopper decisions, the study used its proprietary metric – Consumer Reach Points (CRPs) – to discover how many times a brand was chosen by consumers over the course of one year.
Local brands continue to outpace the market: while the total value of FMCG grew by 4.7 per cent in 2015, local players grew by 6.2 per cent. By comparison, global brands grew by 3.4 per cent. Particularly strong in the food and beverage categories, brand choices are dominated by local players in terms of both the number of brands available as well as in the number of times they are chosen.
Local brands are especially prevalent in Asia, Latin America and also parts of Europe including Spain. Most notable is China – where local brands comprise 75 per cent of shopper decisions followed by Indonesia (61 per cent) and India (57 per cent). The three best performing local brands of 2015 are Chinese natives: Yili, Mengnui and Bright.
Despite this shift, growth is not over for global brands. Within the top 10 brands alone, Lifebuoy, Lay’s and Dove all managed to not only grow CRP, but also move at least one place up the ranking.
The key opportunity area for multinationals is ecommerce, the fastest growing channel, where they currently dominate.
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