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Across the world’s top 25 public consumer products companies by revenue, average organic growth held steady at around 3% during the second quarter of 2025—broadly in line with last year and a modest improvement over 2025’s first quarter. But underlying performance remains pressured. On average, volumes were flat to negative, and margins fell 35 basis points year over year, with renewed input cost inflation creating challenges.
Behind these averages, a greater divergence in performance is taking shape. Among those top players, a handful of companies and categories pulled ahead while others struggled against broader sector headwinds.
Nonalcoholic beverage portfolios remained the standout, with mid-single-digit revenue growth, positive volumes for most, and margin gains. Other sectors saw more modest gains: Most personal care and household and consumer health players delivered low-single-digit, pricing-led top-line growth. Alcoholic beverages remained sluggish, with growth relying on pricing as volumes declined amid weak consumer sentiment. Food players showed tentative signs of stabilization but remained the most challenged: Despite improving volumes and top-line growth, volumes remained negative, and margins saw renewed pressure from rising input costs.
Even with such challenges, a small group of companies—including Danone, Keurig Dr Pepper, and Unilever—outperformed, delivering stronger top-line and volume growth when compared with their peers. Their momentum reflects a common set of brand growth strategies, including innovation and pricing power in premium segments, targeted expansion in emerging markets, and a focus on cost discipline to fuel reinvestment in the business.
Looking ahead, growth will remain challenging in consumer products. Consumers remain cautious on price, and tariffs may accelerate cost pressures. Developed market volumes are expected to stay constrained for many categories, with emerging market expansion offering only a partial offset. In response, companies must learn from the winners to get the fundamentals right—earning the right to boost prices by delivering stronger consumer value, and reigniting volume through innovation and relevance. Portfolio simplification is accelerating, as players divest noncore assets and sharpen focus on growth-oriented brands. Cost productivity will remain key—not just to defend margins but to create reinvestment capacity and fuel long-term competitiveness.
First published in settembre 2025