In the Global South, consumer sentiment has shifted towards locally owned, locally grown as local businesses take on multinational brands.
From cities to countryside, local brands are rewriting the menu. Small and mid-sized enterprises, grounded in regional tastes and agile networks, are rapidly gaining ground—challenging global giants and capturing serious market share.
Several factors are fueling this dynamic shift. The burgeoning middle class and rapid urbanization in many Global South nations are creating an unprecedented demand for diverse food products.
This demand isn’t always met by the standardized offerings of multinational corporations, opening doors for local players who possess an intimate understanding of regional palates and preferences.
Furthermore, a growing emphasis on local sourcing, health-conscious choices, and sustainable practices resonates strongly with consumers in these markets, often aligning more closely with the ethos of local brands.
India stands out as a prime example of a market where local food brands have not only survived but thrived against global competition. The remarkable success stories of Mother Dairy and Amul in the dairy sector are testament to this.
Amul, the world’s strongest food brand in 2024 according to Brand Finance, dominates India’s dairy market with approximately 75% of the milk market share, 85% of the butter market share, and 66% of the cheese market share.
This formidable presence significantly limits the market penetration and growth potential of international dairy brands like Nestlé and Britannia in these key segments.
Mother Dairy, while specific overall market share data is less readily available, operates on a similar cooperative model and holds a strong position in northern India, providing stiff competition to both local and international players in milk and other dairy products.
Beyond dairy, the biscuit market in India showcases the enduring power of local brands. Parle-G, recognized as the world’s largest-selling biscuit brand by volume in 2011, continues to hold a significant volume share in the value-conscious segment of the Indian biscuit market.
While Britannia leads India’s overall biscuit market with a 31% share, slightly ahead of Parle at 29%; however, Parle holds a clear edge in the glucose biscuit segment, where its iconic Parle-G brand commands over 60% market share.
While Britannia dominates in premium and urban segments, Parle’s stronghold in rural North India, combined with its affordability and mass appeal, gives it a competitive advantage in volume-driven categories, making it a formidable player despite the narrower overall lead.
In the fast-food sector, while global giants like McDonald’s and KFC have a strong presence, local players such as Haldiram’s, Wow! Momo, and Goli Vada Pav are gaining popularity with their regionalized menus and homegrown branding.
The reasons are clear: smaller brands are more agile and better positioned to respond to rapidly evolving consumer preferences. These include demands for healthier, organic, locally-sourced, and fresh food options.
Smaller players with a start-up mindset are faster to innovate and test new products without the bureaucratic delays that bog down larger corporations. This responsiveness allows them to connect authentically with modern consumers, particularly those seeking transparency and sustainability in the food supply chain.
The diverse culinary landscape of Southeast Asia provides fertile ground for local food brands to flourish.
The Philippines offers a compelling case study with Jollibee. This fast-food chain has not only survived the entry of global giants but has actually outperformed McDonald’s in its home market, holding a larger market share.
Jollibee’s enduring popularity and extensive network of over 1,000 stores nationwide solidify its position as the dominant fast-food player in the Philippines. This local success story demonstrates the power of understanding and catering to local tastes, directly challenging the global dominance of North American fast-food chains within the Filipino market.
Take Indonesia, for instance—while Coca-Cola may reign supreme globally, it’s not the top choice for Indonesian consumers! After 80 years in Indonesia, Coca-Cola sells around 80 million cases annually. But here’s the twist—local brand Teh Botol Sosro (TBS), a ready-to-drink tea, sells nearly double that. Even more remarkable, TBS isn’t even a cola—it’s a homegrown favourite that rose to the top in less than a decade!
M-150, with its bold, macho branding, dominates Thailand’s $500 million energy drink market, holding over 65% share. Produced by Bangkok-based Osotspa, it has outpaced even Red Bull—despite Red Bull’s Thai roots. Now, Osotspa is gearing up for global expansion, eyeing Europe, the Middle East, and especially the U.S., the world’s largest energy drink market.
Similarly in Colombia, Postobón remains a powerful local beverage brand despite Coca-Cola’s presence, and in Peru, Gloria leads in the dairy sector. In Brazil, traditional favorites like Guaraná Antarctica continue to be more popular than Coca-Cola in several regions, and food brands like Bauducco have a loyal customer base for baked goods.
The rise of artisanal food producers and businesses focusing on sustainable and locally sourced ingredients is also gaining momentum across Latin America, catering to a growing segment of consumers seeking authentic and healthier options.
The emphasis on affordability and accessibility is often a key differentiator for these local players, allowing them to capture significant volume share in essential food categories.
