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Go Where The Growth Is: Key Trends To Explore In Emerging Market

Credit by CPG, FMCG & RETAIL

While sales of fast-moving consumer goods (FMCG) in some traditionally successful markets like the U.S. saw signs of softness in early 2017, opportunities for growth are still readily available if you know where to look. Manufacturers with global reach should focus on emerging markets, which have consistently performed two to four times better from a sales perspective than their developed market counterparts in recent history.

Source: Nielsen Retail Measurement Services

But how can companies maximize their investments in these markets? With this growth comes increased competition. The rules to the emerging market playbook is changing as many smaller players are gaining share and consumers become more discerning. Tapping into this tremendous growth opportunity will require a deep understanding of consumers needs, desires and attitudes. Nielsen’s What’s Next in Emerging Markets report looks at macroeconomic conditions and an analysis of our sales data to unearth four key trends to focus on:

Quality Counts: Premium and private-label sales are both trending up. Consumers see private-label brands improving in quality and are willing to exchange their typical brands for those offering a similar value. Premium goods can still deliver a strong value, however, especially when they offer consumers a unique experience.

Check On Channels: While modern trade is growing, traditional trade remains a cornerstone in rural areas, which is where the largest opportunities for growth exist.

Shifting Societies: Rural and mid-density cities are the next FMCG sales growth frontier. As the infrastructure and job opportunities improve throughout these emerging markets, new centers for trade are sprouting up.

Connected Considerations: Emerging market consumers are setting the pace in digital, mobile and e-commerce behaviors—not just in their own countries, but globally. These consumers are leapfrogging over the traditional systems in developed markets.

The report also discusses:

  • In-depth looks at the unique positive growth indicators seen in Vietnam, Argentina, Brazil, the Ivory Coast and Ghana.

  • Lessons that can be gleaned from sales of non-essential categories like beer and snacks.

For more detail and insight, download Nielsen’s What’s Next In Emerging Markets report

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What's Next In Emerging Markets.​

This report analyzes two notable categories within the FMCG industry—snacks and beer—to understand trends that are driving growth and indicative of undisclosed opportunities.

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