The European Fast Moving Consumer Goods (FMCG) market is not performing particularly strongly compared to the previous year’s results. According to the IRI Report on the performance of the sector in the first six months of 2016 (Figure 4), sales experienced modest growth in value (+0.3%) and a corresponding fall in volume (-0.3%).

A substantial contribution to this negative performance was made by two countries (UK and Greece) where sales fell in both value and volume. As can be seen in Figure 4, the decline in Greece is particularly significant. Germany, Spain and Italy on the other hand have posted positive performances, albeit less dynamic than those of the previous year.

Figure 4 – Trend in sales of Fast Moving Consumer Goods (FMCG)

Source: IRI Topline Report, Q2 2016

Promotional intensity is easing in almost all European countries. The UK and Italy are making greatest use of short-term pricing policies with promotions accounting for 50% and 30% of FMCG turnover respectively in the two countries. However, sales on promotion in the FMCG segment have remained essentially stable in recent years (Figure 5).

Figure 5 – Trend in promotional sales of Fast Moving Consumer Goods (FMCG)

 

Source: IRI Topline Report, Q2 2016