Leading manufacturers and retailers, including PepsiCo, Coca-Cola and Procter & Gamble, implement strategies to deliver best-in-class value to shoppers in 2025
New York, NY, November 13, 2024 – Kantar, the world’s leading marketing data and analytics business, released its 28th annual industry benchmarking report PoweRanking, which spotlights retailers and manufacturers/suppliers that set the standard of performance, as ranked by their trading partners. For the 28th consecutive year, Walmart has claimed the top spot for retailers, while PepsiCo, Coca-Cola, Procter & Gamble, Nestlé and Unilever comprise the top five manufacturers in 2024.
“It’s a significant accomplishment for brands to be recognized in Kantar’s PoweRanking survey,” said Jeffrey Maloy, Senior Vice President at Kantar. “As retailers and manufacturers look to maximize value for today’s consumers, it’s crucial to understand how they work together to collectively drive growth. Kantar’s PoweRanking survey ranks retailers and manufacturers across various areas to showcase the best-in-class trading partners.”
Manufacturers/Suppliers
PepsiCo stood out as the top supplier for the ninth straight year, due to its continued growth, and consumer-oriented business practices. Coca-Cola and P&G maintained their number two and number three positions respectively, receiving strong remarks for the depth of their consumer insights. Other supplier-specific movements compared to 2023 include Unilever and General Mills trading places to number five and number six respectively, as well as Kenvue and Mondelez entering the top ten for their accessibility and strong brand recognition.
“As unit and volume growth slows across most categories, leading manufacturers must take the lead in driving a turnaround,” said Rohan Mazumdar, Vice President at Kantar. “Because retailers are questioning any price increases, they are challenging their brand partners to accelerate volume growth through category-driving innovation and enhanced shopper engagement instead. The top manufacturers, such as PepsiCo, Coca-Cola, and P&G, are well-positioned to partner with retailers to address category growth.”
Retailers
Walmart held its number one spot as the top retailer based on its continued ability to grow and scale in spite of economic turmoil and an ever-changing retail landscape, while focusing on strengthening its relationship with shoppers. Target and Kroger switched places to number two and number three respectively, with manufacturers crediting Target’s shopper experience and Kroger’s use of data analytics and customized offers. Costco and Amazon traded places to number four and number five respectively.
Despite improved sentiment and spending power, consumers are maintaining the cautious purchasing habits formed due to inflation. “After two years of price increases, shoppers are now exploring more retailers and categories, but with greater spending discipline,” said Rohan Mazumdar, Vice President at Kantar. “The result is a significant shift in power, with consumers now in the driver’s seat. The industry must navigate this new dynamic and find ways to recover from the current stall, driving sustainable and meaningful category growth moving forward."
As the shopper value equation remains central to growth prospects, discussions around category performance in 2025 are closely linked to the current and near-term state of the U.S. economy. While economic growth has been resilient, with the CPI dropping from 9.1% in June 2022 to 2.4% in September 2024, consumer sentiment has not significantly improved from the “vibecession” levels of 2022.
Partner Enablement
With price increases no longer an option for most brands, manufacturers and retailers will likely focus on a three-pillar approach to category growth. The first pillar focuses on expanding shoppers' baskets by capturing more categories, using data and omnichannel insights to identify opportunities for basket building.
The second pillar aims to inspire incremental category purchases through greater presence and shopper engagement during the path to purchase. The third pillar involves optimizing category assortment with a refined product-price structure and breakthrough innovation to drive category upgrades.
“Heading into 2025, one thing is clear: shoppers are more empowered than ever and they expect seamless, engaging experiences from retailers and personalized, relevant offers from brands,” said Katie Carroll, Senior Director at Kantar. “As shoppers become more selective and less loyal, driving growth will become increasingly challenging. To succeed, retailers and brands must partner to meet shoppers' evolving needs and ultimately return categories to real growth.”
Kantar’s annual PoweRanking report is the industry’s leading assessment of best-in-class manufacturers and retailers. In an annual survey, brands are ranked on a range of factors, from strategic metrics to business fundamentals, capturing input from a number of key industry leaders. Kantar analyzes how retailers and manufacturers can best innovate and serve shoppers in major consumer goods categories and across food, drug, mass merchandise, dollar, convenience, specialty, ecommerce and club channels.
To download the 2024 PoweRanking® Executive Summary and a preview of the full report, The Growth Mandate: A Collective Rebound, visit https://retailiq.kantar.com/poweranking-2024.
Overview Webinar
Wednesday, November 20, 2024 at 2:00 PM
Registration link: Kantar's 2024 PoweRanking Study Overview
Join us for 2024's rankings of key manufacturers and retailers, and factors driving their mutual relationship as we enter the new year.
- Understand the most important issues in the manufacturer-retailer trading relationship, set against the backdrop of a dynamic macroeconomic environment
- Discover how manufacturers and retailers would rank each other in key business areas such as Strategy, Growth & Profitability, Supply Chain, Consumer Insights and Category Leadership
- Gather insights into what constitutes "Best-in-Class" in the US retail landscape
Speakers:
- Rohan Mazumdar, VP - Consulting Retail, Kantar
- Katie Carroll, Senior Director - Client Experience, Kantar
- Jeff Maloy, SVP Retail, Sales, and Shopper Practice, Kantar
About Kantar
Kantar is the world’s leading marketing data and analytics business and an indispensable brand partner to the world’s top companies, including 96 of the world’s 100 biggest advertisers. We combine the most meaningful attitudinal and behavioral data with deep expertise and technology platforms to track how people think and act. We help clients develop the marketing strategies that shape their future and deliver sustainable growth.