FMCG in Western Europe
Easing inflation results in both a positive impact on volumes and downward pressure on value across all 3 super-categories
The past ten years in FMCG in Western Europe (and indeed, all over the world) feature two distinct periods:
- First, a period of smooth sailing with very little change both in terms of value or volume for the average category in either household care, food & beverages or personal care.
- Then, a rollercoaster ride starting in 2020 with massive growth in terms of both value and volume (except personal care which did not benefit from more time spent at home), followed by a decline in 2021 (from a high base), and then distinctly different paths for value and volume: while low consumer confidence because of economic woes led to pressures on volumes bought, value growth due to inflation reached a level not experienced in 20+ years (except for 2020).
It will be interesting to see whether the latest trends are a sign of more stable times ahead.
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