Category Growth has become a fundamental driver of long-term growth for brands. In this updated Growth Series, we have enriched our understanding and advice with fresh examples and insights, taking into consideration recent world developments.

Brands are 5x more likely to grow if their categories are growing.

(Source: Kantar Worldpanel, 2021 based on 29,000 brands across 52 countries)

We reaffirm our core message from our original study: By prioritizing category growth, not only can you capture a larger share of today’s market, but you can also future-proof your brand, positioning it to thrive amid the challenges and opportunities of tomorrow.

Category Growth has increased in importance over time

Category growth has a more profound and lasting impact than mere market share gains, as it reshapes how consumers perceive and interact with a product category. It’s crucial for sustainable growth, as it strengthens the foundations of the industry. However, many large brands are struggling to effectively capitalize on this opportunity, often missing the mark in execution.

From 2019 to 2022, the largest CPG US companies have lost 4% share points while smaller companies of <1B have gained 4%, capturing the majority of category growth.

(Source: Circana, 2023)

Focusing on category growth enables brands to create long-term value and relevance, but success requires a strategic approach that many are yet to fully embrace.

Watch the introduction to this study