The European grocery market has increased at its fastest rate in a year, according to the latest quarterly FMCG figures from research firm Nielsen.
Grocery retailers surveyed in 21 European countries reported a 1.8% year-on-year boost in sales of fast-moving consumer goods, such as food, drinks and toiletries. This figure is a blend of a 0.9% increase in costs and a 0.8% rise in volume.
The amount of goods purchased in 2016 was a jump of 11%, compared to a decade ago. In 2016, basket value reached a spend 41% higher compared to the same period.
“The value of the shopping basket has increased due to a number of factors, including inflationary price rises, [and] people buying more goods and changing their product mix by swapping in more premium and fresh foods,” explains Olivier Deschamps, senior VP of retailer services for Europe.
Growth Driven By Central Europe And Iberia
Turkey saw the largest rise, tripling its numbers over the decade and increasing 8.8% on the final quarter of 2015. Poland (+4.7%) and Hungary (+4.5%) filled out the top three leaders of 2016.
Greece was the only country that experienced a decline, of 11%, during the decade, ending the last quarter of 2016 with a drop of 2.9%. Finland saw a decline of 3.5% in the same period.
Spain experienced the highest jump (+3.6%) of the Big Five Western European markets (which included France, the UK, Germany and Italy).
"Western Europe saw little momentum in volume sales, alongside unit value deflation in Spain and Italy, and low inflation in France and the UK," explained Deschamps.
Although the year got off to a sluggish start, with slowing sales growth, the final quarter of 2016 was a "stronger end" to the year for the food retail industry, he added.
“Although consumer confidence held steady, it remained low, and growths in 2016 were generally lower than previous years, with volume growth at its lowest since 2013."
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. To subscribe to ESM: The European Supermarket Magazine, click here.
