The Global 50

Back to the Future – Old Questions Need New Answers

The past four years have been anything but smooth for the world’s largest FMCG companies, facing headwinds from the pandemic, inflation spikes, and geopolitical instability. Now, the Global 50 face a “back to the future” moment: with a more stable macro environment, they’re returning to the core question of how to drive sustained growth. However, today’s familiar challenges require fresh solutions, and the path to growth demands innovative answers to old problems, as growth slows from the highs of 2021 and 2022.

Slower Growth for the Top 50

The Global 50 saw headline growth drop to a modest 2.7% in 2023, a significant slowdown from the 10.9% record achieved in 2022. Yet, these companies have showcased resilience through some of the toughest global conditions in recent history.

While organic volume growth declined by 0.9%—the first dip in a decade—pricing actions helped sustain topline revenue. Prices rose by 8.7%, slightly slower than the previous year but still above consumer inflation rates. Food and beverage companies saw price increases of 9.3%, highlighting the sector’s reliance on price adjustments to offset rising costs.

The historical low in inorganic growth, marked by fewer large-scale M&A deals and a focus on divesting non-core assets, also contributed to the overall slowdown, as many of the Global 50 prioritised stability over expansion. However, a few companies continued selective acquisitions.

In 2023, the Food & Drink sector was the most active, with a high concentration of deals. Nestlé and L’Oreal led in terms of deal volume, while Essity recorded the highest total deal value, driven by a $3.95 billion divestment in China. Most recently, the $36bn offer by Mars for Kellanova signalled a renewed confidence in large-scale deal-making.

As the Global 50 sharpens its strategic focus and explores new avenues for growth, we anticipate increased interest in high-growth assets and divestments of non-core businesses in 2025, potentially leading to a lively return of M&A activity.

Lessons from the Top Performers | A No One-Size-Fits-All Approach

While there is no single thematic growth trend in today’s market, there are valuable lessons to be drawn from the Top 50’s star performers.

Pricing & Premiumisation

One of the standout stories of 2023 was the strength of the beer and spirits category. Producers benefited from a robust recovery in the on-trade and travel retail channels as post-COVID travel surged, contributing to 7.8% revenue growth—significantly higher than the 1.4% growth seen in food and drink.

Companies like Molson Coors and Diageo capitalised on premiumisation trends, focusing on high-end product portfolios to capture consumer interest. These companies demonstrated that by investing in core brands and premium experiences, it is still possible to generate meaningful growth even in difficult market conditions.

The Importance of Marketing and Innovation

Product innovation and substantial marketing investments proved to be a winning combination for driving growth.

Mondelez committed to increased marketing spending in 2023 while acquiring Clif and Ricolino, which contributed to nearly a quarter of its sales increase. This strategic focus on marketing and expanding product portfolios to enter high-growth segments has proven to be a successful formula. Mondelez achieved 14% growth, moving up three spaces and securing a place in the top 10.

More broadly marketing spend also increased across the top 50 as companies sought to maintain brand relevance in an increasingly competitive landscape. Although operating costs rose—driven by higher wages and marketing investments—the focus on brand loyalty and product innovation paid off for many players.

Expanding Geographic Footprint

Emerging markets such as Southeast Asia, India, and Latin America have become increasingly vital as traditional growth engines like China experience slower recovery. Some players have already made their strategic moves to capture these opportunities, with PepsiCo, Nestlé, and Asahi expanding their presence in these regions.

The Power of AI

One of the most exciting enablers of growth is the adoption of AI and digital technologies, which help automate content creation and research, process large data sets, and swiftly provide actionable insights.

We’ve seen many of the Global 50, from Unilever to Pernod Ricard, deploying AI to improve supply chains, optimise marketing strategies, and accelerate product development. As AI becomes more integrated into FMCG operations, it is expected to play a key role in unlocking efficiencies and driving future growth.

Looking Forward | An Optimistic Outlook

The FMCG sector is navigating a more cautious consumer base as inflation and cost-of-living pressures persist. However, the outlook for the future remains optimistic. As inflation cools and input costs stabilise, companies are well-positioned to drive long-term sustainable growth by focusing on portfolio optimisation, geographical diversification, and digital transformation.

Looking ahead, the companies that continue to innovate and invest will be the ones reshaping the Top 50 rankings and the future of the industry.

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For access to in-depth Global 50 analysis, actionable growth insights, and expert strategic support, get in touch with our FMCG specialists today.