Consumers in Western Europe last year spent an extra €4.3 billion on FMCG in the grocery retail channel, an increase of 0.9% compared to 2015.
The data, from Nielsen’s Strategic Planner, relates to the nine major markets (UK, France, Germany, Italy, Spain, Belgium, the Netherlands, Austria and Portugal).
Packaged fresh foods grew, often at the expense of bulk fresh products, while the increased consumption of alcoholic beverages is mainly attributable to the decrease in prices.
Growth Analysis
Fresh food accounted for 38% of total growth (€1.6 billion), confectionery/snacks for 23% (€990 million) and alcoholic beverages 20% (€849 million). These three categories alone account for 80% of the increase in spending on food in 2016.
On average, the sub-categories that have contributed most to the overall growth of the food industry have been fresh ready meals, beer, fresh fruit, vegetables and mineral water. In Italy, the market was driven by packaged meats, chocolate, fresh ready meals and bread substitutes.
The ten major food industry players have seen a decrease of €430 million in consumer spending, while smaller producers accounted for 70% of the overall growth. Private label products were responsible for the remaining 30% increase.
© 2017 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
