Consumer Compass Navigating Global Consumer Staples – selectivity remains key

Research evidence excerpt

10 September 2026

Consumer Compass

Equities

Consumer Staples

Navigating Global Consumer Staples – selectivity

remains key

Western Europe, North America

◆ After prolonged weakness, Staples have shown resilience

although many names still trade well below historic averages

◆ We highlight datapoints and catalysts we see as key for the

sector in the coming months; opportunities remain limited

◆ Preferred stocks post the H1 reporting are AB InBev,

Hershey, Keurig Dr Pepper and Reckitt Benckiser, all Buy

Markets holding up but cost and demand worries to persist

Some relief on commodity prices enabled the Consumer Staples to have a good run

ahead of the H1 reporting. Results themselves were mixed although the bias was

towards better-than-expected figures with outlooks mostly maintained and consensus

earnings estimates held. However, the end of the reporting coincided with a rebound

in oil prices while the combination of drought and flooding linked to a strong El Niño

weather system creates additional worries over harvests and resultant risks of food

price inflation. With most companies hedged for the rest of the year, we think 2026

results look secure but reduced visibility on 2027 limits the extent to which investor

sentiment towards Consumer Staples can improve.

Other key datapoints and research to highlight in a polarised sector

The back sections of this report contain a wide selection of performance and

economic data relevant to the Consumer Staples sector. The macro picture appears

stable albeit with low consumer confidence in many developed markets. Valuation

metrics show a sector that has become highly polarised, with soft drinks trading close

to record multiples but most other names well below historical averages. In some

instances we think this presents an opportunity but often it reflects the reality of a

sector where many businesses are struggling for growth in a market with plenty of

alternatives and bond yields have risen in a historically rate-sensitive sector.

Jeremy Fialko*, CFA

Senior Global Consumer Staples Analyst

HSBC Bank Middle East Limited, DIFC

Carlos Laboy

Global Beverage Head, LatAm Food Analyst

HSBC Securities (USA) Inc.

Diego Serrano*

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