Large CPG Manufacturers Continue to Cede Market Share

March 25, 2021

This article is included in these additional categories:

Brand-Related | CPG & FMCG | Industries | Store Brands | Top Brands

IRIBCG US CPG Channel Growth 2012 2020 Mar2021Last year saw US CPG dollar sales rise by an astounding 10.4% over 2019, continuing the growth trend experienced since 2017 but far exceeding the growth rate seen in the past. This is according to a recent study [pdf] from IRI and Boston Consulting Group (BCG) that also found that private label, small and extra small companies were drivers of growth, while larger companies are seeing their market share continue to decline.

The year-over-year growth of 10.4% is close to 5 times higher than the 2.2% growth in 2019 and more than 3 times higher than the 3% growth rates seen in 2015 and 2012. Volume increased year-over-year by 6.4%, as did price/mix (3.7%). It should be noted that these figures do not include all online revenues (only those for store pickup & delivery from brick and mortar stores), which is important considering the growth of CPG e-commerce, especially during the pandemic.

Small and extra small companies were the fastest growing in 2020, seeing a percentage uplift of 15.4% and 18.3%, respectively. Private label, extra small, and small manufacturers increased their market share to 16% (up 0.2 points), 8.8% (up 0.6 points) and 12.6% (up 0.5 points), respectively, while large manufacturers saw the smallest revenue growth (7.5%), with their market share shrinking by 1.2 points to 44.9%.

BCG/IRI used a composite growth index measuring dollar sales % change, volume sales % change and dollar share point change to calculate the standout companies in three size categories, with the results following.

Large Brand (>$6B sales) Growth Leaders

  1. Grupo Bimbo
  2. General Mills
  3. Mondelēz International

For the #1 large brand growth leader Grupo Bimbo, bakery was the top growth category, with Thomas sales increasing by $233M and Entenmann’s sales up by $153M year-over-year.

Other top growth categories were refrigerated dough for General Mills, with growth in brands like Pillsbury (+$402M), as well as cookies for Mondelēz International, which owns brands such as Oreo (+$184M) and Chips Ahoy! (+$105M).

Mid-Size Brand ($1.0-$6B sales) Growth Leaders

  1. Mike’s
  3. The Boston Beer Company

Two other mid-size CPG firms new to the top 15 for 2020 were Land o’ Lakes (#8) and Red Bull (#13).

Small Brand Growth Leaders ($100M-$1B sales)

  1. Germ-X (new to the list versus 2012-2019)
  2. Giovanni Rana
  3. Beyond Meat (new to the list versus 2012-2019)

Here, Swiss Precision Diagnostics GmbH (#4) and Handi-foil (#8) were new small-sized firms for 2020’s rankings.

Read the full study here.

About the Data: Based on IRI data for multi-outlet and convenience, excluding e-commerce, though select click & collect is covered.


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