With 2024 drawing to a close, new research from AECOC has found that some 87% of Spanish retailers and 72% of consumer goods manufacturers expect to close the year with an increase in value sales.
AECOC's Mass Consumption Outlook 2025 Report found that both retailers and manufacturers are 'relatively optimistic' about the remainder of this year, with three quarters (74%) of retailers expecting volume sales to be up for the full year.
Just over half (52%) of manufacturers expect a volume sales increase in 2024.
At the same time, however, a sizeable number of companies – 52% of retailers and 30% of manufacturers – expect full-year results to come in below expectations.
The sector is optimistic about the coming Christmas campaign, with 57% of companies surveyed expecting more promotional activity to take place.
Growth Expected In 2025
Looking ahead to 2025, 87% of retailers and 89% of manufacturers expect to report value growth over the coming year, with projected volume growth ranging from 1% to 3%.
Businesses surveyed also plan to increase their promotional efforts next year, with 76% saying they are actively working on campaigns.
At the same time, inflation is a significant consideration for both retailers and manufacturers, with 94% predicting slower growth or stagnation.
More than half of businesses surveyed expect to invest 'more than ever' in omnichannel and digitalisation, with artificial intelligence also gaining traction – some 18% already use generative AI in commercial applications and 22% plan to start using it in 2025.
Capturing new consumption occasions is also on the agenda, with 64% citing this as a growth opportunity, and 90% already investing in this field.
Challenges On The Horizon
In terms of the challenges businesses anticipate for 2025, intense competition, managing the sales mix between manufacturer and distributor brands, and uncertain consumer behaviour top the list.
Retailers and manufacturers plan to turn to collaboration projects (52%), data-driven decision-making (44%), assortment rationalisation (69%), and new product launches (48%) to offset these challenges.
'The inflationary situation forces the sector to remain agile and prepared for continuous adjustments,' AECOC said. 'Most companies recognise the need to review budgets and redefine business plans more frequently, while more than half underline the importance of more agile and short-term planning.
'Looking ahead to 2025, the report highlights that mass consumption will face a highly competitive and constantly evolving environment, where collaboration, innovation and sustainability will be essential to overcome challenges and capture new opportunities.'
