The 50 largest FMCG / consumer goods companies in the world

24 September 2018 Consultancy.uk

Nestle, Procter & Gamble and Pepsico remain the world’s largest fast moving consumer goods companies in the world. The top end of the sector has seen rapid growth in recent months, in spite of challenging conditions, but a large part of this success is due to the large volume of merger and acquisition activity companies have wielded to weather the storm.

Large fast moving consumer goods (FMCG) companies have seen their revenue growth and operating profit growth hampered significantly in the past years. The sector faces a number of headwinds, as the ecommerce boom continues to eat into the profits of traditional retailers across the global market and currencies fluctuate dramatically while geopolitical instability threatens to hit imports and exports with tariffs. As a result, while the consumer goods segment can expect global demand to rise, key developing markets have undergone periods of slower than expected growth.

At the same time, while markets become increasingly volatile amid changing consumer habits and heightened digital competition, the revenue of top 50 FMCG companies has continued to grow, regardless. According to one recent report from OC&C Strategy Consultants, in the last year, this has risen strongly from 0.5% in 2016 to 5.7% in 2017 – as the FMCG market reached its highest level since 2011. With this in mind, a further exploration of the market to highlight which markets host the best atmosphere for sustained FMCG growth, and which companies are the entities to emulate, is essential for FMCG firms, going forward.

Top 10 largest FMCG companies in the world

Of the world’s largest FMCG companies, Nestlé still sits top of the pile, by some distance. In spite of seeing sales growth plateauing, the company’s $91.1 billion revenues see it out ahead by some distance. Similarly, in second spot, Procter & Gamble did not see noticeable revenue growth in the past year, sitting at $64.5 billion, ahead of Pepsico, which grew by 1% to $63.5 billion. Unilever, which is mooting a simplification of its leadership structure by combining its previously split British/Dutch headquarters, remains fourth with $60.5 billion in revenues, growing 2%.

Meanwhile, seeing by far the largest portion of growth of the top 10, AB InBev saw revenues of $49.6 billion last year, expanding at a rate of 24%. This followed the group’s mega-deal with SABMiller, creating the world’s most dominant brewer, worth an estimated $275 billion. JBS was the last of the top 10 to see more than $40 billion in revenues, while Tyson Foods enjoyed 4% growth, and Coca-Cola retained a strong $35.4 billion revenue.  

While the majority of the 10 largest FMCG players, two changes since 2015 show that by learning from the best practices of the industry’s biggest players, competitors can improve their market share. Cosmetics giant L’OREAL enjoyed solid growth of 4%, hitting global revenues of $29.3 billion, ahead of Philip Morris. The American multinational cigarette and tobacco manufacturing company saw growth of 8% drive global revenues to $28.7 billion.

Top 50

Beyond the top 10, French multinational food company saw growth of 12% in 2017, and revenues of $27.8 billion. The firm was closely followed by a group of four companies. Kraft-Heinz, British American Tobacco (which grew by 38%), Mondelez and Heineken all boasted revenues between $24 billion and $26 billion. Archer Daniels Midland and WH Group were the last firms to see revenues of more than $20 billion.

Top 10-30 largest FMCG companies in the world

Altria Group and Suntory both saw revenues of close to $19 billion, while Asahi Breweries saw 23% growth push revenues to $18.1 billion, rounding off the top 20. Following Japan Tobacco’s $18 billion revenues, General Mills, Diageo, Colgate Palmolive, Kimberly Clark, Reckitt Benckiser, Grupo Bimbo, Johnson & Johnson and Kirin Breweries each bunched at revenues between $13 billion and $15 billion, while LVMH completed the top 30, at a revenue of $11.9 billion.

A number of companies follow closely behind in the following 10 FMCG players. Henkel, Estee Lauder, Kellogg, Molson Coors Brewing (which saw the highest growth of any top 50 FMCG player at 125%), Royal Frieslandcampina, KAO, Nippon Meat Packers, Brasil Foods, Pernod Ricard and Imperial Tobacco were also the last members of the ranking to record revenues over $10 billion.

Top 31-50 largest FMCG companies in the world

Following closely behind with revenues of more than $9 billion were Arla Foods, Essity, Bunge, Carlsberg, and Hormel Foods. Yamakazi Baking, Shiseido (seeing 17% growth) and Tingyi each brought in more than $8 billion each, while Campbell and Danish Crown rounded off the top 50.

M&A trend

In terms of geography, the US hosts more of the top 50 than any other country, at 18. While Brazil hosts a larger average company size according to these figures, of $30.05 billion, this is largely thanks to containing only two of the top 50, so spreading their success less thinly. In terms of the 7 firms hosted outside of the US, Japan, the UK, France, Denmark, the Netherlands, Brazil, or China, the value of these groups is proportionally so high because Nestle and AB InBev fall into this category. Meanwhile, the four FMCG companies hosted in the UK featured a higher average growth than the rest of the world, at 19%.

The combined top 50 players have a total sales revenue of $1.09 trillion, and featured an average growth in sales revenue of 7% in the last financial year. A large driver of this growth has been thanks to the acquisition effect, however.

The top 50 consumer goods companies by country

The FMCG sector saw 60 deals, worth $145 billion in 2017, with four key trends driving the ramping up of M&A activity in 2017. First, a continued emphasis on emerging markets saw 37% of acquisitions occur in such economies. Second, a clear pattern of portfolio optimisation emerged, as global top 50 firms acquired and divested in order to boost their growth ambitions in their existing portfolio areas. Third, “better you” products remained relevant, and five such acquisitions of companies making ‘healthy/natural’ products occurred, as information about the potential health benefits of this spread via new and old media. Finally, there were a number of acquisitions in non-core areas, as businesses explored new avenues to supplement their traditional businesses.

Ultimately, as markets become increasingly volatile amid changing consumer habits and heightened digital competition, many firms now look to acquisitions as a root to spreading risk as well as boosting financial performance in the short term. M&A activity subsequently accounted for around 15% of growth in the FMCG sector in 2017. 

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10 leading consulting companies to work for in the UK

10 April 2019 Consultancy.uk

The UK is home to 100+ leading consulting firms. New analysis reveals the 10 consulting companies that rank as the best industry employers to work for. 

The list of top consultancy employers is based on the views and opinions of employees who were surveyed by The Sunday Times about their experience of their firm’s leadership, workplace environment, development opportunities, wellbeing, pay, benefits and commitment to social responsibility. In the large consulting firms category, two of the Big Four – EY and Deloitte – and Accenture stand out from the rest. Seven other consultancies made the prestigious cut, all of which are small to mid-sized players in the consulting industry. 

EY

Established: 1989
Category: Large consulting firm
Main office: London
Employees: 15,076 

With roots stretching back to 1989, EY now spans over 27 UK offices. The firm supports clients, ranging from small, privately owned companies and global household names, with assurance, tax, transaction and advisory services. As part of the firm’s core values, EY looks for people who demonstrate integrity and respect; people with energy, enthusiasm and the courage to lead; and people who build relationships based on doing the right thing. 

Deloitte

Established: 1849
Category: Large consulting firm
Main office: London
Employees: 16,138 

Deloitte employs staff across 150 countries and territories, and its UK operations now span 24 offices. The professional services giant offers services including audit, tax, consulting and financial advisory. Among the firm’s core values are: integrity, outstanding value to markets and clients, commitment to each other, and strength from cultural diversity.

Accenture

Established: 1989
Category: Large consulting firm
Main office: London
Employees: 10,747 

With employees across 120 countries, Accenture provides a range of services in strategy, consulting, digital, technology and operations to clients in more than 40 industries. The Dublin-headquartered company believes in attracting, developing and retaining the best talent for the business, valuing diversity, fostering an open working environment and demonstrating integrity at all times.Ten leading consulting companies to work for in the UK

Karmarama (part of Accenture)

Established: 2000
Category: Mid-sized consulting firm
Main office: London
Employees: 245 

Karmarama is a creative agency, since December 2016 part of Accenture Interactive. The firm’s services include advertising, direct and digital marketing, digital design and build, data and analytics, PR, social and innovation. Karmarama is in the market known for its ability to blend creativity, digital and data, to help brands better engage with consumers. 

Clarasys

Established: 2010
Category: Small consulting firm
Main office: London
Employees: 90

Clarasys is a London-based management consulting firm that advises and supports clients with business change, process implementation, project management and other related consultancy services. The firm serves a variety of clients, from small, not-for-profit organisations to multinational corporations. Clarasys differentiates itself through its truly democratic approach, with an elected member from each team providing feedback for their department. 

The Berkeley Partnership

Established: 1990
Category: Small consulting firm
Main office: London
Employees: 90

The Berkeley Partnership is an independent management consultancy providing specialist support for transformational change, working side-by-side with clients to achieve their goals. Clients include a number of FTSE 100 companies, multinationals and government departments, with over 85% of clients using the services of The Berkeley Partnership more than once. 

Abbott Risk Consulting

Established: 2002
Category: Small consulting firm
Main office: Edinburgh
Employees: 69

From 12 sites across the UK and Australia, Abbott Risk Consulting provides safety and risk environment consultancy services to some of the most high-hazard industries in the global economy. The company helps to work out the risk associated with hazardous events, such as oil platforms explosions, train crashes, or accidents affecting nuclear power stations.

Alpha Financial Markets Consulting

Established: 2003
Category: Small consulting firm
Main office: London
Employees: 180 

Alpha Financial Markets Consulting is a provider of specialist consultancy services to the asset and wealth management industry, working with 85% of the world’s top 20 asset managers. In order to attract and retain the very best people, Alpha, which has offices in London, New York, Boston, Paris, Geneva, The Hague, Luxembourg and Singapore, seeks to provide employees with a great experience.

Lane4 Management Group

Established: 1995
Category: Small consulting firm
Main office: Maidenhead
Employees: 193 

Lane4 Management Group is a leading HR consultancy specialised in human performance. The company’s team, based in Buckinghamshire, builds on a track record of achievement in business, psychology and elite sport. Lane4 was founded by British Olympic gold swimmer Adrian Moorhouse, Graham Jones and Adrian Hutchinson. 

NHS Transformation Unit

Established: 2000
Category: Internal consulting firm
Main office: Manchester
Employees: 52 

The Transformation Unit is an internal consultancy of the NHS, based in Manchester. The firm provides consultancy services to the public sector based around strategic transformation and planning; finance and analytics; project and programme management; and organisational strategy and engagement. Services span the complete transformation cycle, from developing a case for change right through to implementing new services or systems. 

Other

The top employers list of The Sunday Times further includes several other professional services firms that also provide consultancy services, including firms with an accounting heritage (Anderson Anderson and Brown, BHP, PKF Cooper Parry, Price Bailey), firms with an engineering heritage (BWB Consulting, Caunton Engineering) and those with a tax heritage (ForrestBrown).