Portugal’s FMCG Market Grows 12% In H1 2020
Portugal’s FMCG market grew by 11.8% in value during the first half of the year, compared to the same period in 2019, according to a Kantar study for Centromarca.
Lusa reported that while fewer visits were made to stores during the first six months of 2020, this decrease was offset by a 14% increase in volume and 18.7% in value.
Out-of-home consumption saw a 'gradual return' as the period progressed, the study found, with the growth of 'snacking' and increased consumption of indulgent products such as ice cream and some alcoholic beverages.
During lockdown, average prices were stable and sales growth in volume and value was 'far higher for private labels than for manufacturer brands', according to the study.
The first months of the COVID-19 pandemic also saw a reduction in the number of products on promotion.
In terms of purchase channels, hypermarkets and supermarkets 'lost some ground' to discounters and traditional commerce, the study found.
Online FMCG sales increased by about 50%, representing 3.2% of total sales at the end of H1 2020. Centromarca believes that the growth of the online channel should continue in the short-to-medium term.
Portuguese consumers stated that in the near future they want to increase the purchase of local products, use stores closer to home, reduce the time spent inside stores and replace, where possible, physical purchases with 'online' ones.
Kantar’s study highlights that the Portuguese retail sector has adopted new strategies in response to the current market conditions, such as the establishment of partnerships with home delivery platforms, investing in products and services related to hygiene and well-being, and increasing the presence and promotion of private labels.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine