Overall, about two-thirds (66%) of the companies in the index operate in the consumer goods or advanced manufacturing and mobility (AM&M) industries. This year, the number of AM&M companies in the index is at an all-time high, while the number of consumer goods companies remains slightly below its 2017 peak. The consumer sector’s dominance is largely driven by its share of the Americas index (47% of companies in the Americas are consumer-based compared to 19% for AM&M).
In EMEIA and Asia Pacific, the consumer and AM&M industries are almost evenly represented in terms of the number of companies in the index. However, in terms of revenue, the average APAC AM&M company has $16 billion in revenue, compared to $11 billion for the consumer goods industry. EMEIA has a different trend, with average revenues of $14.6 billion for consumer goods companies and $13 billion for companies in the AM&M industry.
How has the composition of the index changed?
Nearly half (47%) of the new entrants to the Index in 2023 are from the EMEIA region, with companies in the Americas (27%) and Asia Pacific each accounting for 25% of new entrants. “The index composition is stable, with only 7% of new entrants this year. What is striking is the growing prominence of Asia and the economic strength these family businesses possess,” says Thomas Zellweger, Chair of Family Business at the University of St. Gallen.
Notably, new entrants are more likely to be public companies than private companies—in fact, 64% of new entrants are public companies. They are also more likely to do business in the AM&M industry than in any other industry.In fact, 17 of the index’s 36 new entrants (43%) are in AM&M, reflecting a recovery in 20214 Global manufacturing after the pandemic.
Overall, the 2023 Index has slightly more listed companies than private companies, with a total of 260 listed family businesses. While not significant compared to 2021, when the number of public and private companies was even, the number of public companies increased slightly over time (243 in 2017).