The second edition of our Winning Omnichannel report is out.
When zero-based growth is currently the starting point for many FMCG brands and retailers, it is time to find growth in reinvented retail.
In this edition, we explore global FMCG and retail trends, look at how brands can drive growth through different lenses: geographies, targets, and type of brands, whether local or global.
Finding growth in reinvented retail navigates across the different channels in FMCG and the opportunities within e-commerce and discounters, providing an extended vision of areas such as out-of-home. This edition also forecasts how FMCG will continue to change in the coming years with the online and offline proposition and how brands and retailers can keep finding new cross channel shoppers.
We forecast that by 2020, 15.3% of FMCG products will be sold by the three fastest growing channels – e-commerce, discounters and cash and carry. E-commerce will be the fastest raising channel in 2020 representing 7.2% of the global market share boosted by increased internet penetration from markets such as Africa and Asia.
Table 1: Global FMCG value share by channel
| Channels |
2015 |
2016 |
2017 |
Forecast 2020 |
| Hypermarket & Supermarket |
50.8% |
49.8% |
49.2% |
48.4% |
| Discounters |
5.1% |
5.2% |
5.3% |
6.0% |
| Convenience |
5.4% |
5.5% |
5.5% |
5.8% |
| E-commerce |
4.8% |
5.4% |
5.8% |
7.2% |
| Traditional trade |
18.5% |
18.6% |
18.4% |
18.4% |
| Cash-and-carry |
1.3% |
1.6% |
1.8% |
2.1% |
| Others |
14.1% |
13.9% |
14% |
12.1% |
Source: Kantar Worldpanel
Stéphane Roger, Kantar Worldpanel Global Shopper and Retail Director, said: “The global FMCG market is harder than ever growing only a +1.9% in value last year while gross domestic product (GDP) experienced an almost +4% growth. Beyond the average, growth is fragmented because of booming e-commerce and discounters, and struggling hypermarkets and supermarkets. Shoppers are giving a clear message: they want convenience and value for money. At Kantar Worldpanel we predict that spending in supermarkets and hypermarkets will decline to 48.4% in 2020. Successful strategies need better understanding of the new channel dynamics at play and the differences between countries.”Source: Kantar Worldpanel
