NielsenIQ data shows that consumption in 2022 is impacted by multiple variables including supply chain disruption and geopolitical instability, but inflationary pressures are taking more and more importance across the globe.
FMCG prices across Europe are +6.9% higher than they were a year ago, rising to +7.5% in the UK, reveals new data released today by NielsenIQ, which has measured the 12 week period ending April 24 2022 versus the same period in 2021.
NielsenIQ data shows that across 32 European markets, more than eight FMCG categories? out of 10 showed increasing inflation rates during the 12 week period measured, versus the same period in 2021. Perishable food (+8.8%), ambient (shelf-stable) food (+8.7%) and pet food (+8.6%) were the top three categories with the biggest price rises in the European markets surveyed.
Year-on-year inflation is now over 10% higher in several markets from Northern and Eastern Europe, and the trend appears to be lasting. In the short term, prices are still increasing, with Turkey (+69%) and Ukraine (+22%) leading the way compared with the same period they were a year ago.
Data from NielsenIQ also reveals that while these was an increase in promotional activity on FMCG products in 2021 (28.2% of sales were made via promotions vs 25% in 2020), this has not been sustained in 2022 due to inflation, with 58% of European countries reducing the percentage of items on promotion in the 12 week period surveyed versus last year.
Data released earlier this week from NielsenIQ in its latest UK Total Till survey showed that while inflation is now helping to lift category growths across most of the store, volume sales were in decline in all FMCG categories at the UK supermarkets in the last four week period ending 18th June 2022. Rising prices are leading shoppers to consider cheaper meal alternatives, with sales increasing for frozen poultry (+12%), rice and grains (+11%), canned beans and pasta (+10%), gravy/stock (+9%) and canned meat (+9%). Whilst sales of Dry Pasta increased 31%.
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