White Paper: China Overtakes the USA as the World's Largest Economy

250_chinaVsUS-v1.0An economic milestone is expected to occur in 2014 with China likely to overtake the USA to become the world’s largest economy in Purchasing Power Parity or PPP terms.


China and the USA may be economic rivals but beyond the headlines divergent trends in both countries are apparent. Everything from living standards, consumption patterns, the business environment, productivity, retail and travel markets differ in China from the USA.  Similarities are there with income inequality an issue in both countries and both are leaders in the development of renewable energy technologies, manufacturing production and, less auspiciously, pollution.

Our analysts have identified the key weaknesses and strengths of the two superpowers across a wide range of industry sectors and in terms of economics, demographics, consumer trends and the business environment.




Key Facts:

  • As the world’s two largest manufacturers, China and the USA lead in global energy consumption and pollution, with China overtaking the USA in 2010 to become the world’s biggest energy consumer.
  • China is set to overtake the USA in 2014 in terms of international travel and knock Germany off the top spot in 2017 to become the largest outbound source market with 105 million outbound trips.
  • By 2018, USA’s beauty per capita spending is expected to increase to US$240, approximately five times higher than China’s projected per capita spending of US$50. The success of local beauty and personal care players in China has led to brands such as Garnier and Revlon pulling out of the country.
  • In 2002, China overtook the USA to become the leading beer market in terms of volume sales. However, China still has some way to go before it can claim to be the world’s biggest beer market by value.


Have a question or a thought to add? Leave us a comment below.

July 30, 2014

Survey Results: Personal Appearances

Based on widespread gender stereotypes, many would assume that women worldwide are more concerned with their outward appearance than their male counterparts. Euromonitor International's Survey Team polled over 6,600 consumers in over 16 different countries to further understand consumers’ style and their beauty and personal care routines. Play the video to find out which results enforced these stereotypes and which results went against the grain.

For further information, please download an extract of the survey results now or explore the full summary report.

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Premium Private Label Vitamins and Dietary Supplements to Capture Greater Market Share

Mark StrobelAnalyst Insight by Mark Strobel - Consumer Health Analyst

The US$206 billion global consumer health market is highly competitive. In 2013, the top ten companies determined just 25% of retail value share, with the next 25% split between more than 80 additional companies. The vitamins and dietary supplements (VDS) market is especially fragmented, with the three leading companies, Amway Corp, Pfizer Inc and NBTY Inc, combining for just 11% of global retail value sales. The growing presence of private label is intensifying the cutthroat competitive nature of the consumer health market. Though particularly strong among over-the-counter remedies (OTC), more consumers are turning to private label VDS. As private label VDS portfolios evolve from bare-bones economy goods to include high quality, value-added products with non-genetically modified organism (GMO), gluten free, organic, and vegetarian and vegan options, they will capture a greater share of the market by appealing to those consumers seeking premium supplements.

Private Label Presence in Consumer Health

Private label continues its rapid growth in consumer health, achieving a CAGR of 8% to reach retail value sales of US$13.9 billion in 2013. Significantly outpacing industry growth, private label accounts for a greater share of consumer health sales each year. While the US is the primary private label market with retail sales of US$11.2 billion in 2013, these products are gaining traction in other regions, particularly Australasia and Western Europe. The extensive retail chains in these developed regions have the infrastructure to outsource manufacturing, distribute, and provide an eye-catching in-store presence for these products. However, private label continues to have by far the strongest presence in the US, holding 19% retail value share in consumer health in 2013, compared to 5% in Western Europe and 3% in Australasia. Private label retail value share is minor in the emerging regions Asia Pacific, Eastern Europe, Latin America and Middle East and Africa with a share below 1%.

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July 29, 2014

Why Shopper Marketing is Increasingly Important to Soft Drinks

Howard TelfordAnalyst Insight by Howard Telford - Beverages Analyst

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Recently, I attended the Shopper Insights in Action conference in Chicago. The conference centred on strategies for improving data gathering, segmentation and execution inside CPG retailers, with the goal of more effectively understanding and reaching consumers at the point of sale. A short recap of the event is available here.

The improvement of shopper marketing techniques has a particular relevance for the soft drinks industry. High value categories like carbonates and juice have been in a state of decline in the developed markets of North America and Western Europe. Global brands are finding more growth opportunities in emerging economies, but healthier lifestyles are having a global impact on the appeal of major soft drinks brands. Traditional forms of brand building and consumer engagement – TV advertising, billboards, or sponsorship – do not seem to have the same impact when consumers are inundated with many channels of content and unprecedented product choice.

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Euromonitor to Speak at World Food Moscow 2014

WorldFood Logo

Date: September 15-18, 2014

Location: Expocentre, Moscow, Russia

Presentation: September 17, 2014

Speaker: Georgij Grebinskij, Research Analyst at Euromonitor International

Topic:  Confectionary market overview in Russia and Europe

About the event:Over the last 20 years, World Food Moscow has grown to become a major meeting place for the food and drinks industry and a vibrant source of products for the Russian market. Exhibitors are grouped in nine main sectors, ensuring visitors can easily find products of interest, compare them and talk to their manufacturers. WorldFood Moscow attracts a huge audience of wholesalers, distributors, retailers and restaurateurs. This means that exhibitors can fulfil two major objectives at the same time: find a reliable distributor, whilst also gauging demand for their product in this evolving market.

Over just four days, exhibitors see thousands of visitors and develop partnerships which will see their products stocked in shops and supermarkets all over Russia. It’s a prime opportunity for suppliers to pitch themselves against their competitors and demonstrate their strength in the market. To register, please visit the website.

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Rum's Image Problem in Chile Leads to Dramatic Decrease in Sales


Rum, which has enjoyed a decade of uninterrupted growth in Chile, is no longer a favorite among Chilean consumers. Sales of the drink fell by about 40 percent in volume terms from 2011 to 2013. This dramatic drop was caused by rum's image problem in the country. Essentially, the drink became so popular that consumers are now tired of it. Major manufacturers are fleeing Chile, leaving the rum market to a few local brands and imports.

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Problema de imagen del ron en Chile causa dramática caída en ventas

El ron, que ha gozado de una década de crecimiento interrumpido en Chile, dejó de ser un favorito entre los consumidores. El volumen de ventas de esta bebida cayó aproximadamente 40 por ciento entre 2011 y 2013. Esta dramática caída fue causada por el problema de imagen que enfrenta el ron en el país. Fundamentalmente, el trago se volvió tan popular que los consumidores se cansaron de él. Los principales productores están yéndose de Chile, dejando el mercado en manos de algunas marcas locales e importadas.

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Daremos una conferencia en Espacio Food & Service 2014

Logo Food & Service 2014Event Name: Espacio Food & Service 2014 
Event Dates: 3-5 de septiembre, 2014
Presentation Location:  Espacio Riesco, Santiago, Chile

Event Description: Espacio Food & Service 2014, en su cuarta versión, los invita a ser parte del encuentro más importante de la industria alimentaria que se realiza en Chile. Este evento, está dirigido a todos aquellos profesionales que participan o interactúan en los distintos procesos de la toma de decisión, en la elección de sus productos y/o servicios. El evento contará con más de 500 stands y la presencia de 12.000 visitantes.

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July 28, 2014

Glacéau: Revisiting Opportunities and Challenges

Hope.LeeAnalyst Insight by Hope Lee - Senior Beverages Analyst

Seven years after being part of The Coca-Cola Company (TCCC) family, Glacéau has received considerable attention from its parent company and the media. The Glacéau acquisition was one of the most expensive deals in history at US$4.1 billion (20xEBITA). According to DE Master Blenders, the average transaction of acquisition is 12.7xEBITA for the food and beverage industry. Nevertheless, the deal was completed before Lehman Brothers’ collapse, when the market appeared to be booming, buyers were frenzied and advisers were pushy. It is now perhaps time to assess the brand and see if its development has lived up to expectations. The industry consensus is that Glacéau has made little advancement and the brand has not met its original objectives.

glaceau pic3.gif

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Haier Encounters New Challenges

Jamie_KoAnalyst Insight by Jamie Ko - Head of Consumer Appliances

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It has been two years since Haier Group enjoyed the status of top global manufacturer within major appliances, after acquiring Fisher & Paykel in 2012. Thanks to the fast and continued growth of the Chinese economy, Haier has been able to gain share, with its long-established position in its domestic market. However, the cessation of the subsidy program in 2013 is likely to shrink Chinese consumer confidence and demand for appliances in 2014 or even longer. Additionally, the economic growth of China has resulted in wage and production cost increases, which will not be beneficial for Haier as a Chinese manufacturer. To add to its challenges, the recent acquisition announcement of Indesit Co Spa by Whirlpool Corp indicates heightened competition and Whirlpool is likely to win back the status of top manufacturer in major appliances. Should Haier start to press the panic button and if so, what are its solution options?

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Smaller Emerging Markets Still Shine in 2014

Risks outweigh opportunities for emerging markets in 2014 and major emerging markets have all seen their growth prospects revised downwards since January. However, smaller Asian and African economies including Chad, Rwanda, Mongolia and Myanmar will be the top performers and some economies including Peru and the Philippines will also put in a strong performance.

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Recent Posts

Survey Results: Personal Appearances

Premium Private Label Vitamins and Dietary Supplements to Capture Greater Market Share

Why Shopper Marketing is Increasingly Important to Soft Drinks

Euromonitor to Speak at World Food Moscow 2014

Rum's Image Problem in Chile Leads to Dramatic Decrease in Sales

Problema de imagen del ron en Chile causa dramática caída en ventas

Daremos una conferencia en Espacio Food & Service 2014

Glacéau: Revisiting Opportunities and Challenges

Haier Encounters New Challenges

Smaller Emerging Markets Still Shine in 2014