Posted by Filipa Silverio on Jul 09, 2021
Manufacturer brand portfolios: this week we summarise the number and size of portfolios and then look at how each additional brand develops manufacturer share within a category. Our third topic looks at my predictions for the FMCG market over the next couple of years.
- One half of all portfolios boast two brands only. Looking at the 10 biggest players in FMCG – they offer a portfolio in 40 to 70% of the categories in which they compete. Two of them have 5+ brands in more than 20% of the categories in which they compete.
- Beyond the second brand, additional brands bring returns but diminishing ones. And category buying frequency matters – the impact of the 2nd brand is similar but more brands pays off most in high frequency categories.
- FMCG globally in 2020 was 8% higher than pre-Covid expectations. Assuming a relaxation of rules, continued extra working from home and no inflation spike, I expect 2021 to be 2% above 2020 and 2022 to be stable. This represents a long term benefit of 2 to 3 % vs what we expected in 2019.