Market Share Definition

market share definition

What is Market Share?

Market share definition: market share is the percentage of an industry’s sales or revenues that can be attributed to a particular brand during a specific time period.

Market share is calculated by dividing a brand’s revenue generated by the total revenue generated in that industry.

To give a hypothetical example:

  • Coca-Cola generates $32 billion in revenue
  • The US soft drink market is worth $300 billion
  • $32 billion / $300 billion = 0.106
  • Coca-Cola has a 10.6% market share

Market share is seen as an important metric because, as on brand’s claim to the market grows, it means they are gaining customers from their competitors.

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