CPG Niches Rising
Catalina® recently released its 2015 mid-year review of the top 100 CPG brands, and while they focus on the impact of Private Label, we hypothesize that other forces are at play as well, and that niche brands have a bright future.
Out of the top 100 CPG brands, 62 of them posted declining dollar sales in the year ending June 30, with an average decline of 4.4%. And, 90 of the top 100 lost market share.
These results occurred at the same time that sales grew overall in every major category in which these brands compete. While Private Label brands are to blame for a significant share of the switching, other factors are impacting what’s happening at the shelf.
The rise of product customization, personalization, and ‘made for me’ experiences have transformed the consumer landscape into one that is accustomed to having something a little more unique and ‘right for me’ than what the traditional market leaders have to offer. In this environment, smaller niche brands that reach the shelf are establishing a foothold because consumers have stopped focusing on the ‘leading brand’ and started to look for the one that speaks directly to their personality, values and affinities. Whether that niche comes via an organic labeling, green positioning, place of origin, or even just an attitude, brands that can carve out a little space for themselves are finding a home in consumers’ hearts and grocery carts.
While this doesn’t mean that smaller brands are about to overtake the bigger players, it does mean that companies who can articulate and own a unique and meaningful difference for their smaller brands have the momentum of market forces with them. Are you ready to explore the opportunities for your brand?