The majority of the largest packaged food companies have one or more power brands – product ranges that generate over US$1 billion in sales and have at least a degree of multinational presence. The de rigeuer strategy for food companies is to launch brands popular in Western Europe and North America into new territories.
Manufacturers and distributors alike are looking at the Middle East and North Africa as one of the key growth regions. This is mainly fueled by a handful of markets particularly the United Arab Emirates, Saudi Arabia and Egypt. Many brands will look to capitalize on the growth potential that the region offers by way of new entrants or brand expansion with investments rife in the region.
Power brands have seen difficult market conditions, as most are concentrated within staples such as cereals and chilled processed foods, categories experiencing lowering sales growth and competition from private label goods. However, power brands have often outperformed their counterparts where there has been substantial differentiation and added value, as compared to smaller brands and private label. The need for quality products and services will continue to rise with a burgeoning population in the food and beverages sector.
Consumers move into 2018 continuing to question their values, priorities and purchasing decisions; deepening their engagement in the brands and issues that matter to them. Consumers are spending more on products that can make them better - healthier, more unique, more efficient, thriftier. Shifting consumer attitudes and behaviors will continue to cause disruption for business, with mobile technology and internet accessibility playing a key role in shaping these changes.
*Source: Euromonitor International