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Brands need to tap inter-generational loyalty
Brand valuationMarketing to familiesPurchase behaviour
Children continuing the shopping habits of their parents when they set up their own household is the biggest driver of FMCG unit growth, according to Kantar.
In a new study, Brands of the Decade, the research company analyses ten years of actual global shopping habits and finds that increasing penetration – the percentage of households that choose a brand – is key to growth.
Why it matters
Across 11 ‘Brands of the Decade – the brands which saw the biggest growth in their respective categories – growth in penetration accounted for an average of 87% of their growth, meaning that ensuring children establishing their own homes make the same shopping choices as their parents is key to long-term success.
The Brands of the Decade accounted for 25.1 billion (6.6%) of purchases, up from 19.2 billion (5.8%) in 2012. The growth rate of these brands was 31% over the decade, almost double the total branded market’s growth rate.
The number of households buying Coca-Cola – the most-chosen brand over the past decade – increased 17% in that time, in line with household growth, to around 540 million.
The average number of FMCG brands chosen per year has remained consistent at 55 brands per household – breaking into this ‘go-to groceries’ list is key to growth for brands, big and small.
In 2021, the average household purchased 3.2 of the Brands of the Decade, compared to 2.8 in 2012 (but only two of the fifty biggest brands, Dove and Vim, have consistently grown in every year of the past decade).
“There is finite space in consumers’ baskets. Securing a spot on the list of ‘go-to groceries’ – which is unique to each household – is a must. If you’re out of the list, you’re out of consumer’s choice” – Guillaume Bacuvier, CEO of Kantar Worldpanel.
Sourced from Kantar [Image: Kantar]
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