Copenhagen, Denmark – Jan. 17, 2020 – Today, Nielsen (NYSE: NLSN) Global Connect released its predictions around the seven driving forces that will shape the future of Europe’s fast-moving consumer goods (FMCG) and retail marketplace over the next decade. These forward-looking viewpoints speak to the technology, trends and tides-of-change that will affect the future state of European consumer consumption.
SEVEN FORCES DRIVING THE FUTURE OF EUROPE’S CONSUMER/RETAIL MARKET:
THE GLOBAL ROLL OUT OF 5G
The high speed connectivity of 5G will transform the way people shop and revolutionize the Internet of Things for retail. With 5G, the Internet of Things finally becomes a mainstream reality, providing end consumers with access to more data at their fingertips with virtually no response delay.
EUROPE’S GROWING INCOME DIVIDE
Over the next decade, FMCG growth will increasingly be double edged as wealth fragmentation drives both the premium and value ends of categories and markets. While beneficial for the opposite ends of the value spectrum, this shift will continue to erode growth from the middle. Companies that cater to these extremes will meet success.
E-COMMERCE WILL BRING A SECOND WIND FOR EUROPEAN PRIVATE LABEL
As the e-commerce landscape matures within the European market, we foresee private label gaining a second wind of growth. Particularly within discount retailers in Europe, store brands have hit a plateau. Gleaning insights from the U.S. market, online retailers are making a move towards prioritizing their own labels over branded items.
EUROPEAN CONSUMERS WILL SHIFT FROM PASSIVE CONSUMPTION TO INTERACTIVE PARTICIPATION
The next decade of European consumption will be one of interactive participation, where consumer’s desires for things like increased sustainability will turn to action. Nielsen data shows that 58% of European consumers are willing to change their consumption habits to support sustainability.
HEALTH AND WELLNESS WILL BE A STRONG SOURCE OF EUROPEAN GROWTH
Health and wellness sales will soar as Europeans become an increasingly aged population, challenged by weight issues and air pollution, and sensitive to processed products and unhealthy ingredients. Over the next decade, Europeans will demand “better for you” products, pushing companies to innovate in a fresh, new way—tapping into new ingredients and new sources of wellness.
EUROPEAN CONSUMERS WILL GROW TO EXPECT PERSONALIZED RETAIL EXPERIENCES
Personalization will remain one of the most important drivers in retail through the 2020s. As such, companies will need to continue to invest in analytics and AI tools to unlock new ways to reach and stimulate shopper purchases, growing profitability, and increasing customer loyalty to better serve the rapidly changing tastes and needs of global consumers.
TIME WILL BE THE NEW CURRENCY OF CHOICE
Increasingly frictionless commerce in both a click and brick world will change the game for retail. Speed and convenience will drive behavior—and every millisecond reduced is a battle won.
Get more insights and download the infographic here.