NielsenIQ: Another positive year for food retail

NielsenIQ: Another positive year for food retail

A positive growth rate of +6.3% was presented by the turnover of the organized food retail trade* for the whole of 2022, while a similar increase in sales was presented by FMCGs as a whole, at +6.1%, which is however exclusively due to strong inflationary pressures prevailed in the market, as unit sales showed a negative sign, at -0.6%.

Taking a brief look at the different quarters of 2022 and deconstructing the market trend in terms of demand and price level, it is interesting to comment on the significant increase in inflationary pressure in the FMCGs sector, from +1.6% recorded in the first quarter, to +10.9% during the last quarter of the year, with the decline in volume however being contained during the year. Indeed, in the third quarter of the year, tourism seems to have played an important role in consumption, as despite the almost doubling of the average price compared to the second quarter, demand showed a positive sign of +1.1%.

“It is remarkable”, as stated by Kostas Papadakis, Sales & Engagement Manager of NielsenIQ, “that despite the inflation of the average basket of FMCGs at the highest levels of the last fifteen years, the total annual consumption recorded minimal losses, which in fact, as a rule, came from in the first quarter of the year, when organized retail sales are compared to the extended lockdown period of 2021. Consumers may have diversified their preferences at the category or sub-brand level, added more private label products to their baskets, chased offers, but ultimately bought almost the same number of units as last year, maintaining for another year the post-coronavirus high levels of organized retail sales of the last three years”

As for the individual categories of fast-moving consumer goods, Food & Beverages showed the most positive trend of +7.1%, with demand remaining almost constant (+0.5%). At the same time, the categories related to Personal Care Products, as well as Household Products, also saw an increase in their sales in value, by +2.3% & +3.4% respectively, with unit sales however falling significantly (-5.4% and -6.0%, respectively)

All of the Bazaar categories (clothing, electrical appliances, books, tools, garden items, car items, home equipment, etc.) is the only large category that showed a negative trend in terms of turnover at -0.3%, while Fresh and Libra products, on the contrary, showed the most positive trend at +8.3%.

Regarding the different typologies of shops, for another year the large halls of more than 2,500 sq.m. (hypermarkets) continued their growth course at +7.2%, while the smaller halls (>1000 sq.m.) showed the same growth rate. Looking at the performance of the different geographic regions, into which NielsenIQ breaks down the market, it is worth commenting that all the individual geographic regions showed positive trends and especially the regions of Crete and the Peloponnese, which seem to have been significantly boosted by tourism activity , recording a turnover increase of 9.2 and 8.5% compared to 2021.

At the level of categories, in Food & Beverages, particularly high growth rates, purely due to price appreciation, were presented, among others, by Seed Oils (+30.6%) and Olive Oils (+16.4%), while some of the categories of alcoholic beverages such as Wine (-6.0%) and Whiskey (-3.2%), probably also due to the shift to consumption outside the home.

As for the personal hygiene and care categories, the categories that had shown impressive growth rates during the pandemic periods, are now losing a significant part of the turnover that they had built in all the previous years, as a consequence of the change in consumer behavior. Indicatively, the categories of antiseptics (-38.9%), rubber gloves (-18.6%), and oral solutions (-11.0%) are mentioned.