Turkey ahead of all EU countries on FMCG growth
Overall the global information provider revealed that the segment seen sales growths for the second quarter of 2013, aggregated across Europe, were up +1.2 per cent year-on-year, compared to +3.3 per cent year-on-year the previous quarter (Q1 2013).
However; it was Turkey that stood out amongst the 21 European countries involved in the study for experiencing the highest nominal growth, which was then followed by Finland (+4.2%) and Norway (+2.2%).
Fast-Moving Consumer Goods are products like toiletries that are sold quickly and at relatively low cost. Although the profit margin made on FMCG products is relatively small, more so for retailers than the producers/suppliers, they are generally sold in large quantities
Global leaders in this segment to date include Johnson & Johnson, Colgate-Palmolive, Beiersdorf, Unilever, Procter & Gamble, and L'Oréal.
Driving force involves price inflation
According to the market researcher, the nominal increase in FMCG sales value across Europe is being driven by price inflation rather than volume increases and that European FMCG price inflation at 2.7 per cent year-on-year in Q2 2013, was down from 3.1 per cent in Q1 2013.
Elsewhere the report revealed that the UK, with +1.2 per cent had the highest growth of the big five western European markets.
"The 1.2 per cent nominal value rise in aggregate sales was driven by 2.7 per cent price inflation, masking a 1.5 per cent drop in sales volumes," it stated.
Not such positive news for other EU countries
Nielsen further reveals the volume of European FMCG sales in Q2 2013 to have decreased -1.5 per cent year-on-year, compared to a 0.2 per cent increase year-on-year during the previous quarter. And that of the 21 European countries measured, only Turkey, Norway and Switzerland experienced an increase in volume sales.
Adding that nine of the 21 countries experienced a year-on-year decline in nominal value growth; Greece (-4.4%) and the Czech Republic (-3.3%) had the largest decrease. Whilst seven experienced price inflation above 3.0 per cent in Q2; only Greece, Norway and Poland experienced a year-on-year decline.
Explaining the figures, the analyst's European director of retail insights, Jean-Jacques Vandenheede says: “With Easter falling in the first quarter this year, European FMCG sales in the second quarter missed out on a 1-1.5 per cent boost in volume growths.”
“Consequently, year-on-year nominal growths weren’t as encouraging in the second quarter, remaining in somewhat of a holding pattern. It will be interesting to see how the third quarter performs, when we have a more genuine comparison of year-on-year growths.”
