Inflation and Q1 2022
Inflation – what has been the impact in Quarter 1 2022 on the FMCG market, product and store choice in Western Europe?
The FMCG market in Western Europe for Q1 2022 was 3% below Q1 2021 but still 12% higher than 2019
Although down on Covid impacted Q1 2021, the market remains at record levels with continued work from home effects plus inflation. This is in line with our forecast earlier this year where we expect a growth of 2% vs 2021 given current inflation expectations.
As inflation bites there has been a rise in Private Label shares in Western Europe
Driven by Italy and Spain with stability in other countries, shoppers are starting to look at their product choices as has been seen in past times of hardship. It is critically important that brands maintain marketing investments.
After a period of stability there are signs of a return to share growth for discounters in Western Europe
The pandemic led to stability rather than the previous growth for Discounter shares in W Europe. There is now a share rise – driven by a return to growth in the UK, continued growth in Italy and a short term rise after declines in Germany. Working with Discounters is key to brand growth.
