Posted under: Perspectives

Companies are often concerned about ocean freight and import duties, which may make exported products much more expensive than locally available ones. However, premium products with a strong consumer value proposition have a huge opportunity across the world.

AC Nielsen’s research on premiumization* in 2016 revealed that:

  • Consumers are looking for a taste of the good life. Premium segments are outpacing total category sales in most markets – with strong potential for continued growth.
  • Consumers aren’t just trading up on big ticket purchases; they are also going premium on everyday items.
  • Consumers buy premium products for both rational and emotional reasons. The latter resonate more strongly in emerging markets where aspirations for status and accomplishment are high.

Premium Products …

…are about the experience
With increasing affluence, consumers are craving products that offer a total experience.

…make consumers feel good
52% percent of global respondents somewhat or strongly agree that buying premium products makes them feel good.

…are a worldwide trend
Premiumization isn’t just a developing market trend. In the U.S. and several European markets, the growth of premium products outpaced total growth.

…are driving innovation in the CPG space
The availability of new/innovative brands is also fueling growth in the premium segment, as fresh offerings can bring excitement and increased marketing spend to a category.


AC Nielsen Global Premiumization Report December 2016

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