Rising revenues, doubled margins: The away-from-home market is the new growth driver for the consumer goods industry. We explore leading companies’ recipe for success in this unique sales channel.
The away-from-home (AFH) market has emerged as a pivotal growth engine for consumer goods companies, fueled by the resurgence of social activities in a postpandemic world. Whether it’s breakfast at the airport, popcorn at the movies, or late-night snacks from a corner shop, AFH consumption is becoming an integral part of daily life. Over the past year, the AFH market has consistently outpaced traditional grocery retail in growth. This trend is expected to continue, with the AFH channel projected to grow by approximately 8 percent annually in Europe through 2028, compared to just 3 percent for traditional grocery retail.
This rapid expansion of the AFH market is reshaping the consumer goods landscape, offering companies a unique opportunity to tap into a dynamic and lucrative sales channel. AFH not only provides 24/7 revenue streams and higher margins but also reduces dependence on traditional retail while creating new avenues for customer acquisition. Leading consumer goods companies are already prioritizing this segment, recognizing its potential to drive sustainable growth.
To unlock the full potential of the AFH market, companies are adopting tailored strategies that address its unique dynamics. Microlevel growth strategies enable businesses to identify and capitalize on hyperlocal opportunities, while digital route-to-market approaches streamline operations and enhance customer engagement. Additionally, channel-specific revenue growth management practices are helping companies optimize pricing, promotions, and product portfolios to maximize returns. Together, these approaches are equipping consumer goods players to thrive in the fast-evolving AFH landscape and secure a competitive edge in this high-growth market.
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