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Demand Index
Definition
A comparative metric that measures relative consumer demand for a product, brand, or category against a defined benchmark, such as total market performance or a specific retailer. A demand index indicates whether demand is above or below average.
How It's Calculated
(Product or market demand ÷ Benchmark demand) × 100
Example
If a beverage brand has an index of 120 in a specific region, demand is 20% higher than the benchmark market; an index of 85 would indicate below-average demand.
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