FMCG spend in emerging markets overtakes developed markets | Progresiv
Emerging markets overtook developed markets in terms of consumer spending on fast moving consumer goods in 2016, the first time this has happened, according to a new report from Kantar Worldpanel. 
The latest Kantar Worldpanel Brand Footprint report found that emerging markets accounted for 51% of global spend last year, up from 48% three years ago. These markets were also solely responsible for the FMCG value growth ($34bn) in 2016, driven by spending in Russia (14%), Sri Lanka (9%), Indonesia (6%), and the Philippines (6%).
Kantar found that global grocery spend growth slowed down to 3% last year, dropping from 4% growth in 2015. However, this varied significantly by country – the Africa and Middle East regions reported 8% growth, Latin America saw a 9% rise, Europe recorded a 2% uptick (from 4% in 2015), the US had flat sales (from 1% growth previously), while Asia saw growth rise by just 2% (from 6% earlier).
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.
Local brands grew by 3.9% in 2016, while global brands grew by 2.6%. Local brands did particularly well in the food and beverage categories, being chosen in 74% and 67% of purchases, respectively. They have also gained a 1.1% share of the $2trn+ global FMCG market over the past three years.
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. (www.kamcity.com)
