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.
