Overall, around two-thirds of businesses on the Index (66%) operate in either the Consumer or the Advanced Manufacturing & Mobility (AM&M) sector. This year, the number of AM&M companies in the Index stands at its largest ever, while the number of consumer companies is still slightly below its 2017 peak. The dominance of the consumer sector is mainly driven by its share of the Index in the Americas (47% of companies in the Americas are consumer-based, compared with 19% operating in AM&M).
In EMEIA and Asia-Pacific, the consumer and AM&M industries are almost equally tied in terms of the number of companies that feature on the Index. In terms of revenues, however, the average AM&M company in Asia-Pacific has US$16 billion in revenues compared with US$11 billion for the average company in the consumer sector. EMEIA has a different trend, with the average consumer company earning US$14.6 billion compared with US$13 billion on average for companies in the AM&M sector.
How is the composition of the Index changing?
Almost half (47%) of new entrants to the 2023 Index come from the EMEIA region, with businesses in the Americas and Asia-Pacific making up 26.5% each. “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 power these family firms wield,” says Professor Dr. Thomas Zellweger, Chair in Family Business, University of St.Gallen.
Notably, new entrants are far more likely to be public rather than private – in fact, 62% of new entrants are publicly listed. They are also more likely to operate in the AM&M sector than any other. In fact, 16 out of the 34 new entrants to the Index (47%) operate in AM&M, reflecting 2021’s recovery4 in global manufacturing following the pandemic.
Overall, the 2023 Index features slightly more public than private companies, with publicly listed family enterprises totaling 260 of the list. While not significant compared to 2021, where there was an equal split between the number of public and private companies, there has been a slight trend over time toward more public companies (243 in 2017).