European grocery market sees strongest growth in six years
The European grocery market is growing at its fastest rate since 2012 as consumer spending rose by 4.4% in the first quarter of the year, according to Nielsen retail performance data.
A combination of inflation and increased spending on more expensive goods has driven the grocery market’s strong performance, with consumers splashing out 2.6% more per item and purchasing 1.8% more items than they did in 2016.
Already in 2017 the grocery market began to bounce back after a few tough years, with some countries delivering record high sales.
Olivier Deschamps, senior vice president of Retailer Services Europe, said: "One of the reasons for the growth against this backdrop is the performance of local brands over the leading international players. They’ve capitalised on the revival of “local pride”, tapping into consumer and retailer tastes towards premium, local champions, particularly the focus on health and wellness through organic and free-from ingredients. Health now being one of Europeans’ two biggest concerns."
The nations which saw the most dramatic growth amongst the 21 surveyed were Turkey, Hungary and Slovakia, which saw increases of 16.8%, 8.2% and 7.5%, respectively, in takings at the tills compared to the previous year.
The UK, which ranked ninth on the list, saw its total grocery spend grow by 4% as prices paid rose by 1.2% and volumes rose by 2.8%.
"The IMF puts 2018 GDP growth at around 2%, which suggests that economic stability will continue to support grocery sales in Europe. Two growth areas in particular to look out for are e-commerce and private label. Retailers continue to revamp their own brands, upgrading ranges and investing in marketing to tap into consumer needs around competitive prices but good quality," said Deschamps.