10 – 47 – 20: Manufacturers, market share, brands
Complaints about retailer concentration in FMCG are omnipresent. The top 5 banners in many European markets sell 50% or more of total FMCG value, and if we look at retailer groups, levels of 70% or more are quite common. But what about manufacturer power: How much do the top 10 manufacturers contribute to 8 countries’ total FMCG sales respectively? We find that for the average country 47% of total value sales across 79 categories (we only look at the top ten brands in each market) is accounted for by brands owned by the top 10 FMCG manufacturers. This number probably underestimates these manufacturers’ value contribution because parts of PL merchandise will originate from the same factories. The value sales accounted for by the top ten is highest in Turkey (54%) and lowest in Germany (40%) These top ten manufacturers on average own only 20% of all top ten brands across the 79 categories which means that their brands are bigger than the average top ten brand. Whereas the top ten manufacturers own only 13% of brands in Spain, the level is twice as high in France and Turkey.