Germany saw a 3.3% year-on-year increase in consumer spending on FMCG, tech and durable products, to €97 billion, in the first quarter of 2024, according to the latest NIQ Retail Spend Barometer.
Sales growth in the FMCG category was driven by earlier Easter holidays and lower consumer reluctance to buy, according to the report.
Elsewhere, the market for tech and durable products increased 0.1% compared to the first quarter of 2024.
The NIQ Retail Spend Barometer provides an overview of spending in the FMCG sector, including everyday products, such as perishable and non-perishable food, beverages and drugstore products; and in technical consumer goods, household appliances, DIY and clothing in Germany.
Major Findings
Sales of food and drugstore products in Germany increased by 4.6% in the first quarter compared to the same period in 2023, while Austria and Switzerland registered growth of 5.9% and 1.2%, respectively.
Consumers were increasingly willing to buy in stores again, with food sales increasing by 4.5%, fresh produce by 3%, and near-food products, such as drugstore products, registering 6.1% growth.
This trend was driven by flattening inflation, promotions by retailers, in particular discounters, a higher purchasing frequency, and earlier Easter holidays this year, NIQ noted.
All FMCG sales channels contributed to this growth, the data showed, except supermarkets, which recorded a 2.3% decline in sales of food and near-food products, excluding fresh produce.
In contrast, discounters and drugstores increased their turnover as well as overall sales volumes.
Promotional Offers
The data showed that promotional products comprised 24.6% of all products sold in the food segment in the first quarter of 2024.
Consumers bought less per shopping trip but shopped more frequently, as household purchasing increased by 5.8% but 5.3% fewer items were purchased in the German FMCG market.
Oliver Schmitz, head of retail DACH at NIQ/GfK explained, “Due to a higher volume of shopping in the FMCG sector, we saw a year-on-year sales increase for the second year in a row. A market-driven pricing strategy and the right promotions at the right time are important levers for retailers to provide attractive offers to their customers to remain competitive and secure margins.”
“This trend can be observed in retail right now: Consumers are increasingly purchasing along special offers and are visiting a wider range of shops to meet their needs – no longer one-stop shopping, but rather shop-hopping.”
