Price thresholds and latest FMCG Volume Trends

Posted by europanel on Sep 14, 2021

This week we build on the insights related to price thresholds – in what circumstances the different patterns occur and secondly at what price levels. Lastly we look at the latest FMCG global volume trends from the Europanel Barometer.

  1. Sales lift: categories/brands that are expensive (allows more people to buy) or with high price volatility (waiting for deals). Saturation: low frequency categories and where consumers don’t want or can’t store more.
    Loyalty: large and differentiated brands.
    Sales drop: high price volatility as consumers lie in wait for deals.
  2. Small drop: high share and expensive brands – enables more people to buy Large drop: high price volatile categories/brands – consumers wait for best deals.
    Small rise: high price volatile categories and brands – consumers know deals will come.
    Large rise: high share & expensive brands – consumers are loyal
  3. The grocery market is, as expected, below the lockdown peaks of 2020. But globally and for W.Europe this still represents a significant increase vs 2019. Note that the global patterns of decline in Feb.20 and increase in Feb.21 are due to Chinese New Year which was very low in 2020 due to the earlier lockdown