The European consumer goods market registered a modest yet resilient growth of 1.9% in value during 2024, reaching a total of EUR 680 billion, according to the latest Demand Signals report by Circana.
The expansion is largely attributed to the steady demand for essential products, particularly refrigerated, fresh, and dry foods, signaling a shift in purchasing behavior toward basic and convenience items.
A Shift Toward Everyday Essentials
In 2024, refrigerated and fresh food units grew by 2.2% to 84.5 billion units, while dry foods increased by 0.8%, representing 89.1 billion units sold and an additional €7.5 billion in absolute value over 2023. These categories have become consumer staples amid persistent economic pressures, inflation, and employment uncertainty.
The report, which analyzed over 230 categories and more than one million SKUs across six key markets—France, the UK, Germany, Italy, Spain, and the Netherlands—found that spending on basic goods rose by 1.6%, while spending on non-essentials dropped by the same margin. Consumers are becoming more selective, prioritizing value and essential purchases over indulgences.
Regional Performance: Southern Europe Leads
Southern Europe emerged as the growth driver in 2024.
- Spain led with 4.9% growth, reaching €99 billion, thanks to strong domestic consumption and increased demand for fresh and refrigerated food.
- Italy followed with 2.3% growth, driven by dry food and beverage sales.
- The UK posted a 2% increase, as convenience-driven consumption rebounded.
- In contrast, Germany (-0.5%), France (-0.8%), and the Netherlands (-0.8%) experienced declines in unit sales, affected by weaker consumer confidence and economic uncertainty.
Private Labels and Manufacturer Brands: A Balancing Act
Private label brands—often priced more competitively—continued gaining ground, now accounting for 47% of unit sales in the mass market, or approximately 143 billion units. Their stronghold is particularly evident in countries like Germany and Spain.
However, manufacturer brands have begun to claw back share, employing aggressive promotional tactics, smaller packaging formats, and product innovation to stay relevant. Their renewed focus on sustainability, brand trust, and user experience is resonating with the modern European consumer.
Changing Priorities and Product Preferences
Circana’s insights reveal that today's consumers demand more from their purchases:
- 68% prefer products that are versatile—suitable for multiple occasions or needs.
- 64% would not repurchase a product after a poor experience.
- Over 50% of shoppers will try again to find a product they like but few will change their routines for it.
This reinforces the importance of physical availability, brand visibility, and quality assurance in consumer loyalty.
Alcohol and Non-Food Trends
The report also points to evolving social priorities, with categories like alcohol and confectionery seeing a downturn. Alcohol unit sales declined 1.5%, while beverage growth stagnated at 0.1%, likely influenced by rising health consciousness and tighter budgets.
In the non-food segment, growth remains uneven:
- Personal care saw a 0.9% increase, helped by seasonal demand.
- Home care grew 0.6%, with success in laundry-related categories due to innovation and promotion.
Conclusion: A Market in Constant Adaptation
The European consumer goods landscape in 2024 is defined by resilience, adaptability, and value-driven choices. While economic uncertainty continues to influence spending, both brands and retailers are actively recalibrating their strategies—through portfolio adjustments, new formats, and sharper promotions—to meet the evolving needs of today’s cautious but convenience-seeking shopper.
As Ananda Roy of Circana notes, "The sector is showing remarkable agility in adjusting to new realities." With consumer behavior closely tied to affordability, convenience, and perceived value, the key to future growth lies in maintaining this adaptability while reinforcing trust and product relevance.
Source: Vinetur