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Strategy Briefing

Premium Vs Value: Industry and Consumer – Realities and Future Growth Opportunities

Sep 2018

US$1,325

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About This Report

New Report Guarantee

If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!

With significant global unmet potential, long-term prospects for industry growth remain strong. However, the industry will continue to face risks to profitability and needs to secure relevant product array for premium and value consumers to tap well into available potential and create a platform for long-term expansion. This report analyses industry dynamics and the consumer landscape, including product features sought by consumers, as well as growth drivers, pricing, and innovation strategies.

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Overview

Why buy this report?

Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.

Key Findings

Positive growth and struggle for margins to continue

With unmet potential of over USD124 billion in incremental sales, long-term expectations for industry expansion remains strong. However, vast low-income consumer bases, changes in consumer shopping habits, and evolving retail environments will continue to put margins at risk, resulting in the need for market-specific strategies and better understanding of premium and value consumers.

Incomes and pricing - disparities in purchasing abilities and spending aspirations

With GDP and price among the key components of growth, understanding income disparities, trends in affluence, and spending priorities across markets is crucial. With rising incomes, consumers start rationalising their spending patterns, with saving and aspirational purchases usually taking the lead over household essentials.

Providing tangible benefits and meeting market-specific consumer priorities to support premium

Each market always has a segment of consumers willing to pay more for household essentials. However, the willingness to spend more is predicated on the products providing specific tangible benefits to consumers. Preferred product features vary from market to market, and product development and marketing need to consider these differences to appeal successfully to consumers.

Winning share of sales and capturing unmet potential through affordability

Affordability will remain one of the key features of the evolving marketplace. While putting pressure on margins, innovation in quality affordable products allows to tap better into unmet potential, build consumer awareness and loyalty, increase consumption and set the stage for product trade-ups in the long term.

Private label - opportunities for growth, but be realistic about available potential

With significant growth in some of the developing markets and strong presence in developed regions, private label continues to present opportunities for investment and growth. However, as the example of North America versus Western Europe shows, it requires a realistic picture of the extent of future opportunities.

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Introduction

Scope

Data parameters and report definitions

Key findings

Industry Growth: Struggle for Margins

Significant global unmet potential…

…but increasingly tough battle for profit margins

Price competition challenges modern grocery retailers

Global discounters’ expansion adding to pressure

Impact of discounters on pricing in the US

Rationalising purchasing decisions: Price as a motivator in e-commerce

Key takeaways

Incomes, Price, Aspirations and Experiences

Future growth deconstructed

Affluence: still out of reach for the majority of world’s adults

Middle class: retreat, re-group, re-evaluate

Per capita disposable incomes: getting first timers in

Urban environment: better product access and higher incomes…

Health, sanitation and modern hygiene habits

Spending priorities: competing for resource allocation

Key takeaways

Premium Innovation: When Would Consumers Pay?

Are consumers willing to pay more and for what?

Reversing unfavourable pricing: industry takes steps to improve margins

Impact of price increases: understanding specific market conditions

Premium innovation: key features

Premium innovation in consumer tissue: providing tangible benefits

Innovation in hygiene: functionality, ingredients and aesthetics

Modern retail expansion providing platform to market premium…

…but watch country- and category-specific distribution dynamics

Key takeaways

Tapping into Unmet Potential with Affordability

Core of global unmet potential in developing markets

Taking time to grow: long-term demand vs short-term profitability

Winning share of sales with affordable quality

Building private label presence

TAPPING INTO UNMET POTENTIAL WITH AFFORDABILITY

Key takeaways

Private Label: Where are We Now?

Significant player in global tissue and disposable hygiene sales

Private label records positive growth in tissue

Pricing pressures in retail hygiene

Innovation beefs up private label in developed regions

Modern retail expansion supports private label in developing regions

Private label conundrum: North America to catch up to Western Europe?

Key takeaways

Summing Up

Key takeaways: Where do we go from here?

Appendix: Competitor Analytics

Competitor Analytics tool

Overview

Competitors

Market Overlap

Treemap

Overlap Matrices

Appendix: Industry Forecast Model

About Euromonitor International’s Industry Forecast Model

Soft drivers and the Industry Forecast Model

Growth decomposition explained

Significance and applications for growth decomposition

Key applications for Industry Forecast Models

Why buy this report?

Want to find out more about this report?

Request more information

Megatrends

Strategy Briefing

Premium Vs Value: Industry and Consumer – Realities and Future Growth Opportunities

New Report Guarantee

About This Report

New Report Guarantee

Overview

Why buy this report?

Key Findings

Positive growth and struggle for margins to continue

Incomes and pricing - disparities in purchasing abilities and spending aspirations

Providing tangible benefits and meeting market-specific consumer priorities to support premium

Winning share of sales and capturing unmet potential through affordability

Private label - opportunities for growth, but be realistic about available potential

Want to find out more about this report?

Table of Contents

Introduction

Scope

Data parameters and report definitions

Key findings

Industry Growth: Struggle for Margins

Significant global unmet potential…

…but increasingly tough battle for profit margins

Price competition challenges modern grocery retailers

Global discounters’ expansion adding to pressure

Impact of discounters on pricing in the US

Rationalising purchasing decisions: Price as a motivator in e-commerce

Key takeaways

Incomes, Price, Aspirations and Experiences

Future growth deconstructed

Affluence: still out of reach for the majority of world’s adults

Middle class: retreat, re-group, re-evaluate

Per capita disposable incomes: getting first timers in

Urban environment: better product access and higher incomes…

Health, sanitation and modern hygiene habits

Spending priorities: competing for resource allocation

Key takeaways

Premium Innovation: When Would Consumers Pay?

Are consumers willing to pay more and for what?

Reversing unfavourable pricing: industry takes steps to improve margins

Impact of price increases: understanding specific market conditions

Premium innovation: key features

Premium innovation in consumer tissue: providing tangible benefits

Innovation in hygiene: functionality, ingredients and aesthetics

Modern retail expansion providing platform to market premium…

…but watch country- and category-specific distribution dynamics

Key takeaways

Tapping into Unmet Potential with Affordability

Core of global unmet potential in developing markets

Taking time to grow: long-term demand vs short-term profitability

Winning share of sales with affordable quality

Building private label presence

TAPPING INTO UNMET POTENTIAL WITH AFFORDABILITY

Key takeaways

Private Label: Where are We Now?

Significant player in global tissue and disposable hygiene sales

Private label records positive growth in tissue

Pricing pressures in retail hygiene

Innovation beefs up private label in developed regions

Modern retail expansion supports private label in developing regions

Private label conundrum: North America to catch up to Western Europe?

Key takeaways

Summing Up

Key takeaways: Where do we go from here?

Appendix: Competitor Analytics

Competitor Analytics tool

Overview

Competitors

Market Overlap

Treemap

Overlap Matrices

Appendix: Industry Forecast Model

About Euromonitor International’s Industry Forecast Model

Soft drivers and the Industry Forecast Model

Growth decomposition explained

Significance and applications for growth decomposition

Key applications for Industry Forecast Models

Why buy this report?

Want to find out more about this report?

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