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Chart of the Day: Rise of Niche Brands

Line graph illustrating the decline of several CPG companies compared to S&P 500 growth.

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Today’s Chart of the Day from FactSet was included in an article titled, “Startups Are Eating Big Food’s Lunch”, featured in the Wall Street Journal. The chart shows the decline in market share of packaged food companies compared to the overall market over the last three years.

In a nutshell, the rise of upstart/niche brands that promise low-carb, high-protein, and/or low-sugar options with higher quality or fresher ingredients is in style. This shift is being supported by the growth of non-traditional outlets for buying food, such as Amazon, and the ease of advertising through social media with influencers, which are taking a noticeable share away from traditional TV ads.