Q2 Food/HPC Previews - All about Emerging Markets

Research evidence excerpt

Q2 Food/HPC Previews - All about Emerging Markets

Equity Research

7 July 2026

European Food and HPC

Q2 Food/HPC Previews - All about

Emerging Markets

Q2 will likely show a significant gap in growth between European Consumer Staples

developed and emerging markets. We expect India and Latin NEUTRAL Unchanged

America to surprise to the upside and the US and Europe to European Consumer Staples

Warren Ackermanthe downside. This quarter will also see the full ME impact

albeit lower oil helps.Best Ideas: Unilever, L'Oreal and Haleon. +44warren.ackerman@barclays.com(0)20 3134 1903

Barclays, UK

We expect Emerging Markets to do most of the heavy lifting in the quarter. We forecast Alex Sloane

India, Latin America and parts of Asia to deliver some of the strongest growth rates in the sector, +44 (0)20 3555 0645

with Unilever, Haleon, L'Oreal and Reckitt all expected to post HSD to DD growth in key alexander.sloane@barclays.com

Emerging Markets. We think Unilever's Emerging Market operations cold surprise to the Barclays, UK

upside driven by beats in India and Latin America. By contrast, Developed Markets remain Laurence Whyatt

challenged. Europe continues to face a subdued consumer backdrop, particularly in markets +44 (0)20 7773 5324

such as Germany and France where we expect increased private label penetration and tense laurence.whyatt@barclays.com

discussions with manufacturers around pricing. We forecast Europe to remain a drag for Barclays, UK

companies including Unilever, Reckitt, Henkel, Beiersdorf and Lindt whereas we expect the Victor Tramier

outperformers in Europe to be L'Oreal, Nestle and Danone. Figure 1 below highlights our +44 (0)20 3555 0275