Research Outline

Premium FMCG Products

Goals

To find out examples of packaged goods (FMCG) that have moved into premium segments.

Early Findings

  • Head of packaged food at Euromonitor, Jaren Koerten, defines premiumization as "a characteristic trait or feature of a product that elevates consumer perception, creating a willingness to pay more."
  • Chocolate brands Godiva and Lindt are considered to be premium brands, whereas KitKat is in the process of attaining premium status. Nestle is working towards premium status by introducing new variants, e.g. ruby in Asia, and dedicated stores, e.g. Chocolatory in Japan.
  • The process of premiumization should not be confused with simply increasing prices or slimming pack sizes. It takes time and effort to take a brand from regular to premium.
  • Ingredients, packaging, and channel can be considered to be the three pillars to premiumization.