US Insights

From our houses to everyone else's

Ross Smith

Consumer Insights Director

Brands 05.20.2016 / 13:40


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Thanks to its globally dominant brands, US bucks trend of local brands closing in on multinational competitors

US household names continue to dominate the ranks of the world’s most chosen fast-moving consumer goods (FMCG) brands, according to the latest Kantar Worldpanel Brand Footprint study. Coca-Cola remains the most chosen brand globally and in 10 countries. Downy is the top home-care brand, while Colgate leads globally for health and beauty.

Colgate stands out as the only name in the 50-brand ranking with a global penetration of more than 50%. And, the toothpaste brand has added the most shoppers to its portfolio in 2015 for the second year running, recruiting 40 million new households.

The report confirmed that penetration is king. Brand growth and brand size are both driven by the number of buyers and users. This remains true across demographics, developed and developing countries and frequently or infrequently purchased categories and brands. Of all the brands that grew over the past year, 79% of them did so by recruiting more shoppers.

Analyzing 1 billion households across 44 countries in five continents and 300 billion shopper decisions, the Brand Footprint 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.

Key Numbers

  • 50%+ Colgate 2015 global market share
  • 40M new households using Colgate in 2015

The study found that local brands are closing in on their multinational competitors, growing value at nearly twice the rate of global brands for the third year running. Local brands continue to outpace the market: while the total value of FMCG grew by 4.7% in 2015, local players grew by 6.2%. By comparison, global brands grew by 3.4%. 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% of shopper decisions followed by Indonesia (61%) and India (57%).

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.

“Where modern trade” such as supermarkets “is the dominant distribution channel for many global brands, the opposite is true for local brands who distribute through more traditional methods and are thriving in the emerging markets which are naturally showing higher rates of growth,” said Alison Martin, Director at Kantar Worldpanel. “For local brands, the world is their country: they look nationwide rather than just tier one or tier two cities. Not only are there significantly more local brands across the world, it is generally the case that they will reach more shoppers in more remote parts of their market, working in closer concert with consumer need. Where budgets are tight, they will adjust price points or pack size.”

Within the US specifically, there is growth in consumers who are searching for fresher, more sustainably raised produce, fresh meat and seafood. Niche retailers which service customers looking for personalized, more mission-orientated buying experiences are thriving, particularly in bigger cities like New York.

 

 

 

Source: Kantar Worldpanel

Editor's Notes

The full Kantar Worldpanel brand Footprint can be accessed here. Journalists, to speak with the author, contact us. Follow @Kantar and sign up for our insight alerts. 

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