European food market experiences strong growth

European food market experiences strong growth

European consumers have spent 3.7 % more on grocery shopping in the second quarter than in the first, the largest increase in three years’ time. The Benelux also bounced back from bad results in previous quarters. 

Increase for both price and volume

The growth is a combination of a 2 % price increase and a 1.7 % volume increase, according to Nielsen’s calculations based on food retailers’ data from 21 European countries. Nominal Belgian growth reached 2.8 %, its highest numbers in several years. Both volumes and prices grew 1.4 % each, the first volume growth since 2015’s last quarter. Dutch growth was 2.9 %, thanks to a 0.2 % volume growth and a 2.7 % price increase.

 

Turkey experienced the largest increase in cash register income (+ 14.2 %), but in the EU, Slovakia (+ 9.3 %) and Austria (+ 6.7 %) were top of the class. Swiss expenses dropped 0.7 % and Denmark (+ 1.2 %) and Greece (+ 1.9 %) only experienced minor growth. Looking at the five major European markets, Italy ranked first (+ 4 %), followed by France (+ 3.2 %). Germany did not do as well, ranking fourth to last out of 21 European countries, with a 2.3 % growth.

 

Four major reasons

Olivier Deschamps says there are four major reasons the European FMCG market is growing: “Better economic circumstances, particularly in France and Spain; lower unemployment numbers in several countries; consumer trust at its peak; inflation under control. Easter also played its role, but every dashboard is looking good right now.”

 

Excluding major political or economic problems, Deschamps expects turnover to recover even more in Southern Europe and volume growth to persist in Northern Europe over the next six months.