Tito’s in vodka, Michel et Augustin in food, Chobani in yogurt, Innocent in smoothies, See Young in hair care, Catrice in cosmetics: one could point to dozens of small brands that have won over consumers and stolen market share from leading mass consumer goods companies such as Pernod Ricard, Danone, Nestlé, Coca-Cola, Procter & Gamble, L’Oréal, and Unilever.

A.T. Kearney has recently studied the trend of so-called “piranha” brands—smaller companies that are growing rapidly in large categories by taking small bites out of the market share of leading consumer goods firms. According to our research, piranhas enjoyed yearly revenue growth of up to 20 percent, while big companies in the same categories recorded negative sales growth or, at most, 2 to 3 percent growth in 2016.

A.T. Kearney’s study yields an array of lessons on how established consumer goods companies can adapt to this new world of mass premium.

Ideas and Insights

Global Business Policy Council