Small FMCG firms tap big growth in US
15 June 2017
Despite the nearly $3 billion in declines across US retail in the first quarter due to a shift in Easter timing and changing consumer preferences, growth is not completely elusive, Nielsen reports in its latest consumer market update.
In fact, it says, some food and beverage manufacturers are finding pockets of growth, most notably small manufacturers.
“Looking back five years ago, the largest food and beverage manufacturers accounted for one-third of dollar sales.
“Today, they account for 31%, while smaller manufacturers (those with at least $100,000 in annual sales) have gained two percentage points of market share, equal to about $2 billion. Today, the smallest manufacturers, nearly 16,000 companies, account for 19% of dollar sales and are driving more than half of the growth (53%).
“But in a time where the U.S. retail industry is largely contracting, how are small manufacturers finding growth?”