Major economies in Europe continue to grow faster than in 2016
About the Nielsen Growth Reporter
The Nielsen Growth Reporter compares overall market dynamics (value and unit growth) in the FMCG sector across Europe. It is based on the sales measurement that Nielsen performs in 21 European markets, and covers sales in grocery, hypermarket, supermarket, discount and convenience channels. It’s based on the widest possible basket of product categories that are continuously measured by Nielsen in each of these countries and channels.
- The major economies in Europe continue to grow faster than in 2016 due to stronger consumer demand, rising but still low levels of inflation and improving levels of employment.
- This is reflected in a nominal sales for the Nielsen Europe Growth Reporter increasing by +2.8% in Q3 compared to +1.1% a year ago.
- However most of this growth is due to inflationary (unit value) growth and volume growth is more muted at +0.3%.
- The Spanish, Swedish and French economies remain star performers, and as in Q2, there is a continuation of the sales recovery in Southern Europe and lower (but sustainable) growth in Northern Europe.
- The ECB (European Central Bank) expects the current +2.2% GDP growth for the Eurozone to continue for the rest of the year – the fastest growth in 10 years. This suggests that CPG growths will remain close to, or possibly higher, than current levels in Q4.
- Whilst the Eurozone is experiencing a strong cyclical recovery which is helping CPG sales, the growth in UK GDP has stalled and consumers have been hit this year by a rise in inflation stemming from the depreciation in sterling. This is now beginning to impact sales volumes in the UK.
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