Only 16 global FMCG brands chosen more than 1 billion times
Brand Footprint 2014 reveals the Top 50 Most Chosen FMCG brands in the world
Only 16 global FMCG brands were chosen by consumers more than one billion times last year. This was the key finding of Kantar Worldpanel’s Brand Footprint study of the 50 Most Chosen Global FMCG Brands. The research also highlighted the scale of the opportunity that exists for global expansion with the average global penetration of the Top 50 brands being just 20%.
In its second year, Kantar Worldpanel’s Brand Footprint ranking and report outline the winning strategies that the most successful global FMCG brands are employing as well as the key global consumer and industry trends. The ranking reveals the brands that are being bought by the most people, the most often, in 35 countries around the world, across the food, beverage, health and beauty and homecare sectors.
FMCG manufacturers that want to convert more households around the world into loyal customers must compete with established and often dominant local brands. Kantar Worldpanel’s report highlights that local brands are growing their footprints almost twice as fast as global brands, with an average annual growth rate of 2%, compared with 1.2% for global brands. Local brands account for 60% of global FMCG shopping choices and were chosen 129 billion times last year.
However some global brands stand out. Coca-Cola, which remains the world’s most chosen brand for the second year, was chosen more than 5.8 billion times in the last year. The beverages manufacturer was chosen an additional 124 million times in the last year (a growth of 2% which came mainly from Latin America). P&G’s fabric softener brand Downy grew its reach by 26%, adding 9.5 million new households to its consumer base in the last year. The world’s favourite biscuit brand Oreo added the most new buyers – 19 million in the last year – equivalent to the total number of households in the Philippines.
Josep Montserrat, Global CEO of Kantar Worldpanel, says: “Growth is top of the agenda for all FMCG companies, but there is no single path to prosperity. They are looking for new shoppers, new occasions, new markets, and investing in the creation of innovative new products. The Brand Footprint report highlights the opportunities that exist for every brand with global aspirations to expand its consumer base. It provides an essential guide for FMCG manufacturers on their journey to increase the dominance of their brands in the world’s fastest growing markets.”
The top 16 global FMCG brands revealed by Kantar Worldpanel’s Brand Footprint study that are chosen by more than one billion consumers a year are:
Brand Footprint reveals some key global FMCG market trends, including:
- Asia drives growth for global FMCG brands, yet local brands continue to dominate - In the last year 83% of the 3.6 billion additional purchases made by households around the world were from Asia (a growth of 2.9% on the previous year). China, India and Indonesia are the biggest contributors of global growth. Local brands lead in Asia, capturing more than two thirds (69%) of all shopping decisions and growing their reach by 3.1% in the last year compared to global brands which grew by 2.6% in the region.
- Cash-rich, time-poor consumers will pay for convenience – as more women join the global workforce and populations become urbanised, daily life is busier. With less time to shop and prepare and cook meals, food brands such as Maggi (no 4 in the ranking and the most chosen food brand) are launching convenient meal solutions such as cooking bags, gravy pots and ready-to-eat variants. Health and beauty brands are also helping consumers to cut steps out of their personal care regimes by combining attributes such as Unilever’s Vaseline Spray & Go moisturiser.
- Polarisation between luxury/premium and value – while shoppers remain cautious after a long period of economic gloom they are also upgrading to premium or luxury product options across many categories. In Europe and the US they are tired of having to make their budget go further and want a treat. Asian shoppers are trading up because they can and want to have what’s best for their families as the number of middle class consumers increases. TRESemmé grew its global footprint by 10% (adding 9 million households in the last year) by bringing supermarket shoppers ‘salon quality’ hair care products.
Brand and category highlights in the Brand Footprint ranking include:
- Colgate is the most chosen health and beauty brand in the world – The world’s favourite toothpaste grew its reach by 3% to more than 3.6 billion. It is the most chosen global brand of its category in 18 countries and also has the largest consumer base in the world, being purchased by 6 in 10 of global households.
- Maggi is the most chosen food brand – The Nestlé-owned brand of instant soups, stocks, sauces and noodles appealed to people’s emotions with communications focused on how much it tastes like home cooking. Its products were chosen more than 2 billion times in the last year, a growth of 4%.
- Ready to drink tea is the fastest growing FMCG category – It added 15 million new shoppers last year, a growth of 12%.
- Snacks are bought by 80% of the world’s households and continue to grow –Lay’s (no 8), Oreo (no 24), Cheetos (no 38), and Doritos (no 49) are all among the 10 fastest-rising brands within the Top 50 ranking. They excelled at gaining new shoppers as well as increasing purchase frequency with new product development, localising flavours and innovative communications.
- Oreo succeeds in China – the world’s favourite biscuit recruited 19 million shoppers in the last year, more than any other brand in the ranking. It was particularly successful in China, where it is now the no 1 biscuit brand after few years of continuous growth and investment.
Virginia Garavaglia, Global Brand Footprint Project Director and author of the Brand Footprint report, says: “The brands in the Brand Footprint ranking are masters at making their brands matter to consumers, solving functional needs and making life easier while bringing significance to people’s lives beyond mere consumption.”