Following today’s (10 February 2022) release of Unilever’s trading results;

Nina Nowak, Senior Researcher at GlobalData, a leading data and analytics company, offers her view:

“Unilever has performed well despite rocky conditions, as at home trends continue to fuel online shopping, as well as growth in snacking and beauty and household product categories. That being said, indications of further price rises may dampen the company’s future growth ambitions.

“According to GlobalData’s Q4 2021 consumer survey, products from global brands dominate the market, as approximately half of consumers globally typically prefer beauty and grooming and household care products from multinational companies, while over a third (37%) report the same for savory snacks – all of which are key areas for Unilever.

“However, as 32% of people continue to feel extreme financial pressure, further price rises may encourage them to trade down for more affordable private label alternatives. This is particularly concerning for savory snacks, where just over one quarter (26%) of people already typically purchase private labels.

“Unilever will need to focus on continuing to build its product portfolio, particularly in terms of adding value such as nutritional benefits to retain customers. The company’s restructure of five business groups and acceleration of its e-commerce operations is a promising start. As 54% of global shoppers have started, continue, or increased their frequency of working from home in the last three months, home categories will continue to play a big role in Unilever’s future.”

* GlobalData’s 2021 Q4 Consumer Survey, November 2021. Global total of 21,000 respondents