Brand Footprint 2023-p
Brand Footprint 2023
<p><b>BRAND </b><br><b>FOOTPRINT </b><br><b>2023 </b></p><p> </p><p>RESILIENCE <br>RISING</p>
<p><b>BRAND BRILLIANCE</b></p>
<p>In the fiercely competitive world <br>of FMCG, some brands are <br>getting it (very) right</p>
In a world where some households are struggling to pay their bills, you’d assume the Fast-Moving Consumer Goods (FMCG) industry could be staring down a hard road. And yes, there are pockets of pain, but the resilience shown by some brands is nothing short of remarkable. But I’d ask you to hold that thought for a moment.
First, we should reconcile our reality. Global spending shot up by +4.8% in 2022, leaving the +2.6% growth of 2021 far behind. But we shouldn’t be too excited by those numbers. This so-called “value” is mostly driven by inflation's handiwork, not honest-to-goodness consumer demand.
And who (ultimately) pays these rising prices? Well, it's the everyday shoppers tightening their belts and changing their ways to make ends meet. They’re flocking to discount stores, spacing out their shopping trips in some parts of the world, and hunting down smaller pack sizes to manage the money that keeps the household afloat.
Brand Footprint investigates the performance of 37,000 brands across 53 markets and five continents
Put simply, shoppers are being forced to spend more and make tough choices. Though they are presented with roughly the same number of brand choices when they shop, they are buying less and paying more, opting for lower-cost alternatives in some categories and relinquishing others altogether. This pattern is likely to continue, as even when inflation is reined in, prices will stay high to tackle ongoing supply chain challenges and higher energy, production, and distribution costs. But brands are adroitly recognising and responding to consumer pain.
Amid this adversity confronting their customers, brands have exhibited a remarkable capacity for adaptation and growth. This display of brand resilience and empathy for shopper needs is a testament to the industry’s innovative spirit. Even when facing challenging circumstances and scarce growth opportunities, brands have discovered ways to prosper and help shoppers at the same time.
The Top 10 most chosen FMCG brands over the years
Our annual Brand Footprint study, the most comprehensive we have ever conducted, investigates the performance of 37,000 brands across 53 markets and five continents. The invaluable insights derived from this extensive analysis will provide you with a reliable compass to navigate these uncertain times and achieve true growth.
One particularly captivating discovery is the rise of smaller, newer brands that have carved out a niche for themselves, even in categories that appeared saturated. These "up-and-comers" have tapped into the power of empathy and understanding for struggling consumers, addressing their evolving needs and delivering positive results in the face of changing market needs.
At the Cannes Lions International Festival of Creativity in June, we will celebrate the resilience of brands that have weathered the storm and continued to innovate. Cannes Lions is the global stage where the world's most innovative and creative brands come together, showcasing their breakthrough ideas and campaigns and earning well-deserved recognition. We’ll be using the event to spotlight those who stand out to shoppers.
To further amplify the power of brands, this report offers a view of the strategies employed by winning brands that will hopefully inspire others to emulate their success and thrive.
<p><b>BRAND BATTLE: BEST IN SHOW</b></p>
<p>The winners circle for brands<br>is a great place to be</p>
In the world of FMCG, there’s a moment — a split second, really — when a shopper's hand hovers between two brands, and they make their choice. That’s the moment we aim to capture with our Brand Footprint ranking. We tally up those Consumer Reach Points, seeing just how many times shoppers reach for a particular brand. In other words, we look at how many times they made a brand choice.
Now, times are hard, and you’d think a tough economic climate could spell trouble for brands. For some, it has, but many have found their footing and learned to dance in the storm. That’s what we call brand resilience, and it's something worth recognising. Even when the chips are down, brands keep surprising us with their ingenuity.
Each year, we set out on a treasure hunt for those surprises. Our teams dug up gems that'll help you navigate to real growth. Among the jewels, we found scrappy up-and-comers, the underdogs that took on the big dogs and came out on top, even in categories folks said were fit to burst. There were also the big dogs demonstrating why they’re at the top of the brand rankings.
Which factor do you believe has the most significant impact on a brand’s resilience in the FMCG market?
- Pricing strategies
- Empathy and understanding for struggling consumers
- Innovation and adaptation
- Marketing and advertising
This year, our examination of the market doesn’t stop at brands — we also cast an eye across the various retail channels. We do so as inflation pushes more shoppers into the welcoming arms of discounters and Private Label goods. We are, of course, mindful of what this "unbranding of the world" might mean for both brands and retailers, and we’re diving into those market tensions, too.
For some brands, it’s about winning back wandering hearts. For others, it’s about going all-in on their best bets. To that end, we’ve got a fantastic interview with Shrenik Dasani, Sprite’s Global Senior Director — the top shopper recruiter in the world — showcasing the magic that happens when you play your cards just right.
For some brands, it’s about winning back wandering hearts. For others, it’s about going all-in on their best bets.
And we won’t stop there. We’ll be building on this Brand Footprint report over time, bringing you fresh insights throughout 2023 to equip brands and retailers with as much timely knowledge as possible when they make decisions.
Consumer Reach Points explained
If you’re new to this report, we use the unique and insightful Consumer Reach Point (CRP) metric to gauge brand success. CRP combines population, penetration, and consumer choice, allowing us to see just how often shoppers choose any particular brand. One CRP is one choice.
With this metric, we can rank the most successful brands across markets, giving you both a bird’s-eye view and a detailed look at brand performance in terms of finding new customers. We develop global, regional, and local market rankings, making it a breeze to access the data you need and evaluate your performance against competitors.
Beyond our own Kantar Worldpanel team, I should also extend a big thank you to our partners at GfK who help us deliver such great coverage. And from the United States, we're thrilled to welcome Numerator, a division of Kantar Group, that gives us an extraordinary market read in the US.
Packed with valuable insights and strategic takeaways, Brand Footprint will empower you to fuel your brand's growth. Dive in to discover the top-performing brands and the winning strategies they’ve employed to achieve growth.
But before you read on, let’s first look to the very latest list of brands in our “hall of fame”. We’re proud to introduce the top 50 most chosen global brands in the 2023 Brand Footprint report.
Meet the world’s most chosen consumer brands
Coca-Cola hits number 1 again, along with a raft of other consumer favourites. One thing to keep in mind is that success is always driven by winning in the biggest markets.
<p><b>BRAND </b><br><b>BLAZING</b></p>
<p>Brand tactics are key <br>for those who survive and thrive</p>
“To grow, one must first embrace change”. We think it’s fair to say the FMCG industry has run towards, rather than away from, the changes thrown its way in recent years.
Growth is a journey, not a destination, and for many brands in 2022 that journey was a positive one. Brand choices were up (61.3 brands per household in 2022 vs 60.9 in 2021). which is obviously good news for those who were able to push their way into the world’s increasingly competitive baskets. However, the growing trend of rising Private Label in 2023 means those brand choices may be substituted for Private Label alternatives.
Smaller baskets may also deliver tougher headwinds to shopper recruitment, particularly in markets where shoppers are less familiar with the impact of inflation on their purses. Our teams are spending a lot of time working with clients on this challenge at the moment.
In 2022, we saw shoppers basically making the same number (only 0.1% difference year-on-year) of CRP choices as the previous year, but they were clearly making different choices than they have in the past. As the report rankings show, they’re trying smaller and local brands. Plus, proportionally, smaller brands are growing versus the total market.
Market context
Unlike the COVID years, when growth rates soared by 10.6% in 2020, the growth we’ve seen in our latest examination of the global FMCG market comes not from demand driven by a population forced to stay home for months at a time, but by inflation. Food price inflation is above 10% in all regions except Asia, which is reflected in that region’s slower growth year on year.
The Food and Dairy sectors are driving the overall FMCG figures, while Beverages and Health & Beauty saw their growth slow. Growth was stronger in the second half of the year, and this may represent how the industry is likely to perform at least for the first half of 2023.
If this isn’t true growth, where are we really? The FMCG volume numbers help smooth out the story. Indeed, we have seen no bounceback from the volume declines we saw in the post-COVID period: sales are down, prices are up.
Which sector do you think will experience the most significant growth in the FMCG industry in the next year?
- Food and Dairy
- Beverages
- Health and Beauty
- Home care
But — and this is an important ‘but’ — we see a persistent and consistent common denominator among brands successfully recruiting more shoppers: Penetration. Our reality is that half of brands globally are winning, and half are declining, but 88% of those winning do so with improved penetration, up from 86%. On average, those winners are gaining 1.8 penetration points.
Of course, not all growth is created equal; profitable growth is one of the most elusive targets for brands and retailers of all sizes. We have seen this profit challenge reflected in some of the big retailer and brand earnings reports. We should also note, as you’ll see later in this report, that growth is behaving differently depending on where you are in the world.
For further context, the number of consumer choices (interactions with brands across categories) was essentially flat year-on-year, a first in the history of this report. But there is important movement within this metric that saw local brands gain in importance over global brands. Local brands saw a CRP share of 67.7% vs global at 32.3%, an increase of 0.6%.
Local brands saw a CRP share of 67.7% vs global at 32.3%, an increase of 0.6%
The implications of this seemingly small shift point to a larger trend. Local brands are continuing to find their place, and doing so when the frequency of brand engagement is down (-2.2%). We need to recognize that a 1% lift in local brands versus their global counterparts is seismic in the dollar terms of multi trillion-dollar industry.
A lift of 1% in penetration is adding 12 million households
We also need to recognize the household level investments here. We calculate that each household is worth USD $1,008 a year, and each brand chosen is worth an average of USD$3; up by 5% in this latest year of reporting. To put a value on that: a lift of 1% in penetration is adding 12 million households which equates to $36 million on average.
But to get that 1% increase, a brand needs to find 224,000 more households today than they did only last year to stay at the same levels of brand performance. Most of this extra work required can be attributed to a global population increase.
The shopper behaviour data that explains 2022
<p><b>GREAT </b><br><b>EXPECTATIONS</b></p>
<p>Brand diversity <br>grows success</p>
Let’s get into the detail. We’ll look globally, locally and talk about brands by size. Here’s what that looks like:
The average penetration gain in 2022 was higher than the previous year for brands of all sizes at +0.5 percentage points. There are several pieces to this dynamic, but these two stand out:
Asia, particularly India, is driving CRP growth, even as Europe and the United States softens.
Improved penetration has come at the expense of brand frequency.
We also have shoppers trying new brands, particularly smaller or local brands, and there are many more small brands than global brands. A twist this year is the way small brands are fighting their way into shopping baskets and gaining more traction than previous years. In many ways, they are the rising stars. They’re also showing resilience across all categories, except beverages, where global brands have held their traditional stronghold positions.
A twist this year is the way small brands are fighting their way into shopping baskets and gaining more traction
At a local brand level, we also see a trend of shoppers finding gravity points with their local offerings.
Through all of this, brand loyalty is pressured. Of course, much of that pressure comes back to that word again: inflation. It’s a word that is making the FMCG industry work (very) hard for its money. We’ve been inundated with questions on pricing, portfolio, promotion, innovation, and the nuances in between. Additionally, the dynamic between retailers and manufacturers has been wrought at times as retailers battled to hold prices down to keep shoppers in their stores and curb the bleed to discounters as shoppers race to conserve their spending power.
Discover the Kantar BrandZ Most Valuable Global Brands 2023 report from 14 June 2023, with new insights on how the highest performers are investing in strategies that differentiate, protect value, and advance sustainability credentials to connect more closely with consumers.
Find out more:
www.kantar.com/brandz
<p><b>PENETRATING INSIGHTS</b></p>
<p>Some brands <br>are making success look easy </p>
Penetration refers to the percentage of households that purchase a particular consumer product or brand within a given period. As we know, it is an important metric for the FMCG industry, as it indicates the potential market size for a particular product or brand.
However, achieving high household penetration can be challenging, as it typically requires a combination of effective marketing, strong distribution channels, and unique product proposition to drive brand trial and repeat purchases.
Penetration requires a combination of effective marketing, strong distribution channels, and unique product proposition
Unilever-owned Sunsilk has achieved remarkable success in the hair care sector, thanks to its focus on delivering affordable, effective products to consumers around the world. The brand has found 32.2 million new shoppers, had 14% CRP growth, and jumped two spots in the Worldpanel global rank.
One of the key drivers of Sunsilk’s success has been its performance in top markets like India, the Philippines, Bangladesh, and Brazil. In India, for example, the brand’s Dashain Festival campaign engaged with the audience and reached 100 million views (66 million on TikTok), helping Sunsilk grow its global penetration by 2.2 points.
In Brazil, the Seda Boom (Seda is the name Sunsilk is marketed as in Brazil) relaunch #FocaNaLiberdade (Focus on Freedom) campaign helped the brand grow its market share, reaching 40 million people through a reality show featuring live celebrities for 72 hours.
Oreo has achieved remarkable success by taking advantage of a product flywheel effect, which has allowed the brand to extend and stretch its offerings beyond its cookie foundations. One example of this is Oreo’s frozen products, which include a range of frozen treats such as ice-creams, cones, pots, and sandwiches. This move has helped Oreo find 26 million new shoppers and expand into new markets.
Yet, even as it expands into new categories, biscuits remain at the core of Oreo’s business, and the brand has continued to find success with new shoppers in markets like India. In India, Oreo gained a whopping 5.7 million new shoppers and saw an increase in penetration points by 19 million buyers in 2022.
Mondelez-owned Oreo can attribute some of their success to initiatives such as its #StayPlayful campaign, which celebrates the fun and playful aspects of the brand and evokes memories of family moments. This campaign has helped reinforce Oreo’s position as a heritage brand while also reimagining its portfolio to stretch from the pantry to the freezer.
Overall, Oreo’s success is a testament to its ability to innovate and evolve while staying true to its core values and heritage. By expanding into new categories and markets while continuing to focus on its core business, Oreo has established itself as a leader in the biscuit industry.
Ariel, a brand owned by Procter & Gamble, has achieved remarkable success in the laundry detergent industry thanks to its commitment to delivering innovative, sustainable, and effective solutions that meet the needs of consumers around the world.
Ariel has found 17.5 million new shoppers, had 11% CRP growth, and jumped six positions on Worldpanel’s latest brand rankings. This success can be attributed to the brand’s strong performance in top growth markets like India, the Philippines, Colombia, and Mainland China, where it has focused on delivering efficient and effective products that resonate with consumers seeking high-quality laundry solutions.
Ariel’s commitment to sustainability is demonstrated by the brand’s Eco-Box, which uses 60% less plastic than traditional detergent bottles and appeals to consumers who are increasingly concerned about the environmental impact of the products they use.
In addition to its focus on innovation and sustainability, Ariel has also developed strong marketing campaigns, such as the #ShareTheLoad campaign, which addresses important social issues like gender inequality while also highlighting the efficiency and efficacy of Ariel’s laundry solutions.
With Procter & Gamble’s ownership and its focus on meeting consumer needs while addressing important issues, Ariel is well-positioned to continue its success in the laundry detergent industry.
Sprite was a clear winner in our global rankings this year. The numbers speak for themselves. Sprite found almost 34 million new shoppers in the space of a year. And they did so in the midst of a global cost-of-living crisis.
Shrenik Dasani led Sprite’s global growth mission and spoke to Kantar about how the Sprite team found such high levels of success off the back of their “Heat Happens” global brand platform and its focus on Gen Z.
The heat is on
He also said their approach was about listening closely to the consumer landscape beyond the binary acts of purchase. “We recognized that these heated moments are part of the fabric of our daily lives. Heat is everywhere, it’s inevitable. It can be easy to lose your cool. So, with “Heat Happens”, we offer consumers one simple reason to refresh and keep cool with an ice-cold Sprite, whether they are on-the-go, or facing the end of a long, heated day, or even the heat from their favourite spicy food.”
Of course, it would be easy to argue that Sprite in some markets has been easily linked to physical heat, but the brand went further to expand its footprint to provide more engagement opportunities.
Typically light-hearted (and relatable) examples in the Sprite creative executions, built around such everyday heated moments, included:
When you are about to settle down to chill at the end of long, heated day, and your little brother brings out his new favourite musical instrument
Standing in an endless queue at a music festival, in the summer sun
Or when your WiFi gives out in the middle of your favorite TV show
Dasani said this real-world approach to execution was intentional. “It was brought to life with a globally relevant, locally nuanced platform featuring real-time digital and social experiences, music experiences and content, and new consumer, shopper and out-of-home communication that tapped into relevant and topical moments and passion points.”
He said they were also able to take full global advantage of the tension of “heat” that resonated with all regions, and the universal proposition of Sprite being the element that ensures you never lose to the heat.
Dasani said the proposition enabled them to create authentic and witty social content based on audience insights about seemingly innocent situations escalating and becoming heated quickly.
“These helped engage with our target audience, whilst ‘Heat Hacks’, our on-pack instant rewards program, which rolled out in key markets, helped our fans beat the ‘heat’ of everyday life, whether they are at home or on-the-go.”
Identifying demand
Put simply, Sprite achieved a new level of relatability. To gain deeper insights into this accomplishment, Kantar closely examined the market using Worldpanel's Demand Moments lens to understand the underlying factors.
As an example, we chose the United Kingdom, where Sprite excelled in various consumer occasions known as Demand Moments. Specifically, Sprite outperformed in the "Routine and Recharge" and "Family Favourite" Demand Moments. This indicates that Sprite was a popular choice for satisfying moments of personal refreshment and enjoyable experiences with others, perfectly aligning with the expectations of the brand’s Gen Z customers.
Worldpanel saw similar alignment with occasions and retail channels in some of the biggest global markets. In China, Sprite adapted to the pandemic-induced change in consumer behaviour by capitalising on proximity channels like grocery stores, mini markets, and convenience stores. The brand also leveraged online-to-offline platforms like Ele.me and Meituan to deliver products in a convenient shopping experience in an uncertain environment.
“Our global focus on Zero Sugar was also sharply relevant in the case of China, where the zero-sugar segment has seen strong growth in the past years – and hence was the right opportunity for Sprite to capitalise on. We deployed our new visual identity in China (which enables Sprite Zero Sugar to stand out), brought highly engaging and exciting experiences around Sprite Zero Sugar to consumers, and our system in China focused on accelerating availability and commercial execution for it, leading to these results.”
Insight–led recruitment
So how did Sprite go about identifying its 34 million new shoppers? “With our primary target consumer identified as ‘Gen Z navigating a heated world’, this allowed us to expand our audience to a set of humans for whom our proposition is highly relevant. The type of experiences and messaging were based on micro insights related to the heated moments of everyday life faced by them,” Dasani said.
It also unlocked new opportunities for Sprite Zero Sugar. The brand was able to address a segment which had not been as strongly exposed to the brand in the past. This immediately unlocked new growth avenues for Sprite. “The role of market research was critical in ensuring we always remain focused on the consumers we seek to serve, and our internal discussions, alongside our agency partners, on mining those findings for strong, scalable insights, were crucial in showing us the way forward.”
For example, in India, Kantar found clear evidence that Sprite’s focus on driving penetration beyond the core classes of affluent groups in metropolitan areas, resulted in shopper recruitment in underleveraged pockets in smaller towns and villages where there was untapped demand.
Music matters
Strategic partnerships built around consumer passion points, also played a key role. Music was at the core of the strategy. In June 2022, Sprite launched its new music program, Sprite Limelight, in four key markets - a passion point activation and investment to engage consumers through music in partnership with Universal Music Group for Brands.
Sprite Limelight Season 1 featured a Grammy-winning producer and global artists who collectively introduced a totally new and unique method of making music, composing a central hook, or chorus, that inspired each artist to create their own original songs.
The launch benefitted from the first-of-its-kind globally coordinated roll-out, reigniting Sprite’s heritage in music and delivering widespread reach and engagement via social, PR and influence, as well as through local market-led media amplification.
The content secured 444 million views, 15.8 million shares, 8.8 million PR impressions and 19.8 million comments across social media, successfully connecting the brand with a new generation of consumers like never before.
Future facing
Dasani was also able to recognise the learnings that came in 2022 and continue into 2023. He pointed to three of them:
There is no greater investment in the brand than staying close to our consumers.
It takes significant effort and some good luck to chance upon an insight that is not just universal but also scalable.
Whilst it is good to be based on universal insights, it is key to nuance executions in local markets to suit the local cultural context.
And looking forward, what comes next? “We will remain focused on consumer needs and keep learning and evolving, with the goal of bringing relevant and exciting experiences and products to them. This will inform all of our marketing and innovation strategies in the future. At the same time, our system will continue to work on bringing the right packages, at the right price, easily and conveniently available whenever consumers face moments of heat (whether on or offline).”
“We will remain focused on consumer needs and keep learning and evolving, with the goal of bringing relevant and exciting experiences and products to them. This will inform all of our marketing and innovation strategies in the future."
<p><b>WINNING </b><br><b>WAYS</b></p>
<p>Small brands <br>are delivering big success</p>
The rise of small brands is a warning shot across the bows for the bigger players. We know they’re successfully finding their way into baskets as consumers make different choices. Some brands are doing it with price, others with marketing and messaging. But all of them are finding ways to win, often in crowded categories where larger brands have long dominated. Evolving consumer needs are encouraging more trial, and these brands are proof of that shift.
Small brands are finding ways to win, often in crowded categories where larger brands have long dominated
Rising stars:
Brands making it big
Ricola’s success is its ability to innovate and stay relevant to modern consumers. In 2022, the brand found 10.9 million new shoppers compared to the previous year, thanks in part to the launch of sugar-free Swiss herbal candies that provide a refreshing and indulgent experience.
Ricola has also experienced significant growth in key markets, particularly in the US, where it grew 8%. The brand’s CRP growth was 25%, and it jumped 83 spots in the Worldpanel global brand rankings. This success can be attributed to Ricola’s focus on its heritage as the finest Swiss herb drops, made with organically cultivated herbs from the Swiss mountains.
In addition, Ricola relaunched its iconic packaging design, which showcases the brand’s core design heroes: the iconic amber cube surrounded by the special herbs that make up the unique blend of Ricola. Each herb is illustrated by a botanical artist, and the historical Ricola trapezoid is central to the design. The new design reflects the brand’s commitment to nature and its Swiss origins, with a more natural logo that improves the purchase experience.
With a focus on naturally cultivated herbs, a perfect balance between functionality and enjoyment, and its Swiss origins, Ricola appeals to a growing consumer base.
CeraVe has become a rising star in the personal care sector, thanks to its focus on science-backed formulations, transparency, and education. The brand has achieved remarkable success in recruiting new shoppers in a crowded market, with a CRP growth of 24% year-on-year, and recruitment of 6 million new shoppers. CeraVe’s success can also be attributed to its social media presence, particularly on TikTok, where it has established itself as the #1 skincare brand with more than 4.4 billion views and counting.
The brand’s acquisition by L’Oréal in 2017 has also played a significant role in its success. Prior to the acquisition, CeraVe operated as a small, standalone company with relatively low levels of market exposure. However, since the acquisition, the brand has exploded in popularity and has become a key player in the skincare market. L’Oréal bought CeraVe as part of a strategy to satisfy the growing demand for active skincare at accessible prices. The acquisition allowed L’Oréal to tap into the fast-growing market for affordable, research supported skincare products, while also providing CeraVe with the resources and expertise of a global beauty conglomerate.
Overall, CeraVe’s success is a testament to its commitment to innovation and quality, as well as its ability to connect with consumers and deliver products that meet their needs. With its focus on education and transparency, CeraVe has established a loyal customer base that appreciates the brand's empirical approach to skincare. With L’Oréal’s resources and expertise, CeraVe is well-positioned to continue its success in the personal care sector and meet the growing demand for affordable, effective skincare products.
<p><b>WALLETS </b><br><b>RELOADED</b></p>
<p>Price pressures putting <br>the squeeze on retail: How <br>the industry is responding</p>
The inevitable elephant in the room has been the Discounters. Led by Aldi and Lidl, there has been a growing stampede to their stores. For the first time in the last decade, Discounters is the fastest-growing channel (+10.3% growth). This increase sits inside an FMCG industry that has grown as much in the past three years as in the previous eight.
Yet the rise in Discounters has led, at least in part, to a slowing of the online channel. Online growth slowed to +5.6% globally, making it the 3rd fastest growing channel but still ahead of the overall market. The e-commerce slowdown was caused by Western Europe, where the channel lost share, with Great Britain being the main source of loss. E-commerce is still making gains in Asia and the US.
The Discounter and
e-commerce tug-of-war
In the midst of rising inflation, Aldi and Lidl have become havens for budget-conscious shoppers. The Discounters, so prevalent in Europe, have seen a significant boost in their market share, swiping it from other retail channels, particularly Hyper & Supermarkets.
As older shoppers who had previously shifted to online during the COVID-19 pandemic return to brick-and-mortar stores, they’re seeking value and, as a result, flocking to these Discounters. It bears repeating that for the first time in the last decade, Discounters have become the fastest-growing channel and show no signs of slowing amidst aggressive store openings.
Both the Discounter and
e-commerce channels have seen an increase in shoppers and visit frequency, but the difference in performance boils down to trip spend. If we overlook the spend component, e-commerce continues to win the growth rate race.
E-commerce superstars: The brands crushing online
FMCG sales
One of the big channel winners was traditional trade. Less trendy to talk about but still a massive driver of sales in markets like India (86% of trade) and Indonesia (90% of trade), traditional trade saw value growth of 7.2% in 2022 on a global basis. Some of this can surely be attributed to shoppers making the channel shift as they shopped more locally and more often. The smaller pack sizes typically on offer, such as sachets, have also been in demand as households manage their cash flow more closely.
The pressure on prices in a climate of shrinking take-home wallets forced us to shop differently
Even as country-level inflation numbers begin to ease in 2023 after topping out at double-digit levels in some markets, we can expect food inflation to run higher than broader inflation indices. Food and Dairy have been, and will continue to be, the drivers of that trend.
But we also need to recognise that falling inflation levels, even for groceries, don’t mean a return to lower prices. In medical terms, we will just be stabilising the patient. Shoppers will be forced to live with higher prices, and the changes they make to their buying habits may become permanent.
As humans, we regularly prove how adaptable we can be, when pushed. The pressure on prices in a climate of shrinking take-home wallets (in real terms) for most, forced us to shop differently. That meant down-trading, smaller pack sizes, more private label, and even product or category abandonment. In other words, we adapted. As we move through 2023, it will be crucial for brands and retailers to adapt and innovate to keep pace.
Understanding regional nuances and consumer preferences will be key to maintaining growth in this challenging environment. Brands that can successfully navigate inflationary pressures while delivering value and meeting consumer demands will stand the best chance of thriving in the months and years ahead when we expect supply chain and cost challenges to be the norm.
We can also expect to see further diversification of retail channels and a continued focus on delivering a value-driven shopping experience for savvy consumers. As always, this will involve leveraging technology, data, and insights to better understand customer preferences and tailor offerings accordingly.
In the face of inflation, what strategy do you think is most effective for FMCG brands to maintain their market share?
- Prioritise local brands
- Increase focus on online channels
- Enhance product offering and variety
- Offer more value through promotions and deals
<p><b>ENDLESS INTERACTIVE INSIGHTS</b></p>
<p>Explore our exclusive <br>brand data hub</p>
<p><b>WHAT IS </b><br><b>BRAND </b><br><b>FOOTPRINT</b></p>
The categories
The complete ranking comprises five global FMCG sectors – Beverages, Food, Dairy, Health & Beauty, and Homecare – tracked by consumer purchase panels. Non-barcoded Fresh Food, Batteries and Pet Food are not included in the global ranking. All data relates to purchases brought into the home to be used or consumed there.
The data period
The Brand Footprint ranking is based on data collected over the 52-week period between November 2021 to the end of October 2022.
Criteria of eligibility for a brand to appear in the Global ranking
Only global brands are analysed to create the global Top 50 Ranking. To be considered as global, a brand must be available in at least two continents and above 1% Penetration. Data collected from Ghana, South Africa, Egypt, Japan, Kenya, Morocco, Nigeria and UAE is not included in the global ranking. Therefore if a brand is present in any of these markets plus only one other continent it will not be considered global.
Due to market conditions, we have excluded Russia from this year's report.
Brand Definition
Brand Footprint only covers consumer brands; retailers’ own-label brands are not included. Brands listed include all variants, categories and formats that sit within them – for instance Pantene includes all of its shampoo, conditioner, hair treatment, hairspray and hair oil products. Brands sold under different names in different countries are considered as individual brands – for instance Tide and Ace or Lay's and Walkers. However, for brands with a name that has been directly translated into a local language, for example Mr Muscle and Mr Músculo, both are counted as the same brand.
The ‘universe’
The data is collected from 53 markets covering 87% of global GDP.
Data source
Brand Footprint is a Kantar’s Worldpanel Division initiative.
Thanks to our partnerships we have been able to offer countries outside of the Kantar footprint.
Kantar in collaboration with Kantar Worldpanel / CTR in China.
Data for the US was provided by Numerator.
Data for Austria, Belgium, Czech Republic, Denmark, Germany, Hungary, Italy, Netherlands, Poland, Romania, Slovakia, and Sweden was provided by GfK.
Data for Japan was provided by Intage.
About this report
There may be small changes in the data reported for Colombia, France, Spain, Japan, South Korea, Saudi Arabia, US, Egypt, Romania, and the Philippines due to ongoing panel enhancements and data restatements.
We have continued to ensure the brand and category definitions used are identical across countries, and continuously improved our product classification.
The overall result is that this year’s ranking is our most accurate reflection of global Consumer Reach Points.
About Kantar
We believe in the power of brand; to create value and fuel sustainable growth by better connecting with consumers. To help brands unlock that power, we start with people – what shapes their attitudes, behaviour and aspirations – everywhere.
From brand strategy to sales performance, we blend a unique combination of expertise, analytics, products and platforms to create the most meaningful insights on how people think and act.
Whether for targeted action or big strategic leaps forward, we reveal the indispensable insights and advice you need to connect with your consumers, to create value for your business, to shape your brand.
Find out more
If you’d like additional information on Brand Footprint, please get in touch with your usual Worldpanel contacts or email:
Pedro Costa
Operations Project Director
Worldpanel Division, Kantar
pedro.costa@kantar.com
Virginia Garavaglia
Global Head of Marketing
Worldpanel Division, Kantar
virginia.garavaglia@kantar.com
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