According to the 2011 report Economic Uncertainty Affecting FMCG Sales, across Europe the value of shoppers’ weekly groceries has risen in every country except Greece in the first six months of 2011 (H1) compared to the same six month period in 2010.
At the same time the volume of goods sold has decreased in Germany and the UK, indicating that shoppers in these countries are attempting to reduce or maintain the cost of their weekly grocery shop.
In Germany, for example, the volume of total FMCG sales in H1 2011 was -0.8% lower than in the same period the previous year. This compares to -0.9% in the UK. The increase in sales volume in the first half of 2011 compared to 2010 was 1.8% in Italy, 0.4% in The Netherlands, 1% in France and 2.2% in Spain.
Italy experienced the highest%age rise in sales value growth compared to the first half of 2010 at 3.1% followed by France at 2.7%, Netherlands and Spain at 2.2%, the UK at 2% and Germany at 1.7%. Still coping with the economic fallout from its financial crisis, Greece is the only country to experience a drop in the total value of FMCG sales.
Tim Eales, director of Strategic Insight at SymphonyIRI Group, explained: “Consumers in the UK and Germany seem to be more cautious than any other country about the economy. As prices continue to rise they are saving where they can to keep the overall price of their weekly shop within budget.
“So far consumers in these countries have been quite resilient to food price increases and have been cutting spend in other areas such as out of home treats or non-food purchases. But for many households this has a limit and so some shoppers are now forced to cut their food purchasing too. There appears to be a limit to how much the weekly grocery budget can stretch, particularly when faced with rising bills in other areas such as energy and petrol.”
Eales added: “With a rise in the volume of grocery sales in France, Italy, The Netherlands and Spain we expect that it consumers in these countries are making savings in other areas, cooking at home for friends and family for example rather than eating out.”
Other key highlights from the research include:
Source: SymphonyIRI Group
© FoodBev Media Ltd 2021
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