shopping consumption

FMCG performance maintains its stability; the 3.7% in nominal value increase continent-wide was backed by stable consumer confidence and continuation of moderate inflation. Compared to this figure, the pace of the Hungarian FMCG growth was more than twofold, resulting in 7.6% in the period in question, keeping its position within the top3 countries. Better performance was registered in Turkey and Finland, according Nielsen’s quarterly Growth Reporter in Europe.

Hungarian FMCG upholds its dynamism: volume sales were up by 3.4% compared to Q3 previous year, whereas this figure in Europe was 1%. Unit value changes impacting the fast moving consumer goods, including foodstuffs and drug categories, was at 4.2%. In Europe, unit value change constituted as main growth driver, the market increased by 2.7% due to increased prices.

Hungarian Food market increased by 7.3% in nominal value; the Drug sector, with its 8.9% growth, surpassed this impressive pace.

„Albeit the latest quarter’s results are 0.2%p behind that of the dynamics of Q2 2018, the year over year comparison still indicates accelerated performance. After 7.4% growth registered in June, an 8% increase took place in the Hungarian FMCG market by September” says Gergely Kovács, Client Business Partner, Nielsen. “With 8.2%, the last quarter in 2017 was outstanding in terms of performance, so it will be intriguing to see whether the year-end results shall outperform that of the previous year.”

All 21 countries tracked by Nielsen increased in term of FMCG performance.

Turkey continues to show the highest year-on-year growth in takings at the tills (+21.0%), followed by Finland and Hungary (both +7.6%). Poland (+5.9%), the Netherlands (+3.8%) and the United Kingdom (+3.5%) come next in the list. On the other hand Austria (+0.8%), Denmark (+1.0%) and the Czech Republic (+1,0%) had the smallest growth.

FMCG (nominal sales) growth in Europe improved to +3.7% in Q3 2017. This is despite a slow down in Eurozone GDP with growths being helped by stable consumer confidence and the continuation of moderate inflation. As a result, the annual nominal sales growth across Europe also improved to +3.7% which is the highest since 2012.

Annual inflation in Europe is stable at +1.7% and is forecasted to be similar in 2019 (source Eurostat).

Helped by a good summer in most of Western Europe, stronger growths in UK, NL, B and Germany, events such as the World Cup and the continuation of moderate inflation, volume growths have recovered and are back to the 18month trend of +1%. This is slightly above the +0.7% growth of this time last year. Looking ahead, with a less favourable external environment, recent economic recoveries starting to slow in some countries, new political uncertainty and increased oil prices impacting consumers through higher energy and travel costs, we may be close to a peak high for FMCG growth in Europe.

Q3 2018 Growth rates by country

Nominal GrowthUnit Value GrowthVolume Growth
European average3.72.71.0
Austria0.80.8-0.0
Denmark1.0-0.31.3
Czech Rep.1.03.6-2.6
Italy1.31.3-0.0
Switzerland1.52.1-0.6
Greece2.00.51.5
France2.12.00.1
Slovakia2.21.80.4
Germany2.31.80.5
Belgium2.42.9-0.5
Portugal2.82.20.6
Ireland3.100.42.7
Sweden3.11.31.9
Norway3.22.40.7
Spain3.22.01.2
UK3.51.61.9
Netherlands3.81.42.4
Poland5.92.03.9
Hungary7.64.23.4
Finland7.62.35.3
Turkey21.018.92.1

About the Nielsen Growth Reporter

The Nielsen Growth Reporter compares overall market dynamics (value and unit growth) in the Fast moving Consumer Goods sector acrossEurope. It is based on the sales measurement that Nielsen performs in 28 European markets, and covers sales in grocery, hypermarket, supermarket, discount and convenience channels. It’s based on the widest possible basket of product categories that are continuously measured by Nielsen in each of these countries and channels.

Source: Nielsen

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