FMCG online sales were boosted by the pandemic. Discounters and Private Label have recently gained advantage from store openings and the current inflationary cycle.
But what will these important parts of the market look like in 5 years time?
Discounters are likely to gain significant shares in the next 5 years
Based on projected store openings, the shares taken by Discounters in Europe are likely to rise significantly by 2027 especially in Eastern Europe. Working with these retailers is key to future growth for manufacturer brands.
Private Label is growing share but is likely to gain more than one extra share point in the next 5 years
Based on the projected share openings and shares for Discounters by 2027, Private Label will also add share – over one percentage point in both regions of Europe. Maintained or increased investment by brands in advertising and innovation will be critical to help counter this threat.
Online shares could increase by nearly two percentage points by 2027
Shares for FMCG purchasing online in Western Europe are static after the pandemic boost. But using the trend up to 2019 from the new level established in 2020 would lead to an average share of nearly 8% for the big countries in the next 5 years.