The brand new RetailX European Consumer Packaged Goods market 2024 report looks at how Procter & Gamble (P&G) is a dominant force in Europe’s everyday essentials end of the CPG market.
It boasts a vast and diverse product portfolio catering to various household and personal care needs, with some of the world’s best-known brands on its roster. These include Ariel laundry detergents, Febreze air fresheners, Mr. Clean cleaning products, Swiffer cleaning tools and Lenor fabric softeners.
However, it also offers many other renowned brands across beauty and grooming, such as Olay skincare products, Pantene hair care products, Head & Shoulders shampoo, Gillette razors, Braun electric shavers and SK-II premium skincare. It also plays in healthcare with Oral-B toothbrushes, Crest toothpaste and Vicks cough and cold remedies, as well as in baby, feminine and family care segments with Pampers nappies, Always feminine hygiene products, Ambi Pur air care products, Bounty paper towels and Charmin toilet paper.
This diverse portfolio caters to a wide range of consumer needs, making P&G a one-stop shop for many household essentials. This is reflected in its reach, seeing P&G operating across Europe and boasting a near-ubiquitous market presence.
Germany, the UK, Italy and Spain are the most established markets for the company and account for a significant portion of P&G’s European revenue. Scandinavia and the Baltic states represent smaller but stable markets with high brand loyalty towards P&G products. Central and Eastern European markets in Poland, Hungary and Czech Republic offer significant growth potential.
As would be expected from such a leviathan of pan-European CPG, P&G employs a robust multi- channel distribution strategy to reach European consumers. It has strong partnerships with major supermarkets, hypermarkets, convenience stores and independent retailers across Europe. This puts products in front of hundreds of millions of consumers in physical stores and ensures that these brands maintain strong recognition across the market.
P&G also works with a network of large distributors who supply its products to smaller retailers, restaurants, cafes and hospitality establishments, extending product reach beyond traditional retail spaces and into these other areas, again reinforcing brand recognition.
While not as dominant as traditional channels, P&G is increasingly exploring D2C sales models, particularly for premium beauty products and subscriptions for certain care products, including Braun and Oral-B in Germany. It also features a ‘where to buy’ button for Braun, Olay, and Oral-B in the UK, linking to Tesco, Boots and Amazon.
As a publicly traded company (PG on the NYSE), P&G boasts impressive financial performance. In 2023, its global revenue exceeded $82bn, with Europe being a significant contributor. It has also shown consistent year-on-year revenue growth and strong profitability, solidifying its position as a CPG giant.
P&G’s position in the European CPG market is captivating for several reasons. P&G possesses some of the most recognisable and trusted brands globally. It is known for its impactful and often emotional marketing campaigns, which leverage various channels, including traditional media and social media, to connect with consumers and build brand loyalty.
This commitment to widespread and consistent marketing strategies has fostered strong brand loyalty across generations.
While maintaining a strong brand identity, P&G tailors its marketing and product offerings to local preferences in European markets. This adaptability strengthens its connection with diverse consumers.
The company is, like all businesses in the European CPG sector, focusing efforts on sustainability initiatives, aiming for net zero across its business. The company is particularly focused on water use, pledging a 30% reduction in water usage by 2030, building on a 20% reduction achieved since 2002.
The company employs water-efficient product development and collaborates with communities on water management projects. It has implemented a Children’s Safe Drinking Water Programme, which provides clean drinking water to communities in need, addressing critical issues such as water scarcity and promoting healthier living environments.
In addition, P&G aims to halve waste generation by 2030, having already achieved a 40% reduction since 2002. Initiatives include zero-waste packaging and collaborations with suppliers to foster a culture of waste reduction.
This is one of 12 company profiles in the RetailX European Consumer Packaged Goods market 2024 report. Paul Skeldon also looks at the underlying market for CPG goods in Europe, how each part of the often complex supply chain has to change to meet these new demands and what that means for a raft of key players in the sector.
Drawing on market data, consumer surveys and case studies, the report offers a snapshot of where the European CPG market is today, where it has come from and, crucially, where it is heading.
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