How is inflation affecting the take-home Grocery market?
Are shopper choices changing in terms of store and product? And if so, why?
Despite inflation FMCG volumes remain very resilient.
The high levels of inflation naturally mean significant value growth for FMCG: + 7.5% globally in Q3. But volumes are also strong when compared with non-Covid affected years – globally 1% ahead of Q3 2019 and over 3% higher in W Europe.
Discounters are gaining share but due to store openings and higher price rises than the market.
Whilst Discounters are gaining share compared with stability over the pandemic, this is due to having 5% more stores than 2019 and because their prices are rising much more than the total market.
Private Label is gaining share but due to Discounter share increases and price rises that are 50% higher than the market.
A rising share for Discounters and much higher price rises cause PL share growth. Volume share growth is much lower resulting from just one influence – the rise of Discounters – which in turn is mostly due to store numbers.