Growth has always been a challenge, and even more so now. Building on our survey from September 2022, we surveyed 175 European executives in March 2023 to better understand how mid-cap consumer companies plan to tackle growth in the coming years. While the previous survey revealed actions that have delivered success in the past, this survey focuses on the future plans of companies with high growth ambitions. Here are four key findings from the latest set of responses:
- Fewer companies expect to achieve compound annual growth rates of 10 percent or better over the next three years than did in our previous survey.
- New challenges are emerging, such as sinking consumer sentiment and a decreasing ability to pass through inflation.
- Companies with high growth ambitions trust a different set of levers than do companies with less aggressive growth profiles.
- Investment levels are generally projected to increase, making ROI optimization more critical than ever.
In this video, McKinsey partners Kathleen Martens and René Schmutzler discuss these and other insights gleaned from the survey.