French grocery spending remained flat in 2024, inching up just 0.3%, as shoppers prioritised value amid a tough economic landscape, according to Kantar.
Despite easing inflation, prices remain above 2022 levels, preventing consumers from feeling relief. Economic anxieties, unfavourable weather, and declining birth rates also contributed to the flat growth, the study noted.
Budget-conscious shoppers continued their hunt for deals and discounts, favouring store brands.
Overall household FMCG spending across all retail channels – hypermarkets, supermarkets, convenience stores, discounters, drive-throughs, and specialised stores – dipped by 0.9% between 2023 and 2024.
The gap between rich and poor widened, with lower-income households cutting back their spending by 3.2% while wealthier households increased theirs by 0.6%.
Consumer Trends
French shoppers made more frequent trips to the store during the year but bought less each time, prioritising essentials over non-essentials.
With 20% of households feeling financial pressure, spending on beverages (-3.4%), beauty (-3.4%), and cleaning products (-1.8%) saw the steepest declines in 2024.
Branded products suffered as consumers increasingly opted for more affordable private-label alternatives, which now command nearly 40% of the FMCG market.
While overall spending on eco-friendly and organic items remained low, it increased by 0.7% in the second half of 2024.
Shoppers showed increased interest in home-focused categories, such as cooking ingredients, comfort foods, energy drinks, and personal care items.
New regulations limiting promotions have negatively impacted the drugstore, perfumery, and hygiene sector.
French Retail Landscape
The French retail landscape is undergoing a significant transformation.
While traditional retailers lost ground (-1.1%), e-commerce reached a 10.3% market share (+0.7%), convenience stores gained 0.2% to reach 7.8%, while specialised retailers saw a 4.3% hike of sales in value.
Consumers, driven by value, increasingly sought deals at stores like Action, which attracted nearly 10.5 million households, and flocked to retailers like Grand Frais offering higher-quality fresh produce. This fragmentation forced roughly 700 stores to rethink their branding or pricing.
E.Leclerc consolidated its leading position with a 24.2% market share (+0.6%), while Carrefour benefited from acquiring Groupe Casino stores, gaining 0.8 percentage points to reach 20.6%.
Les Mousquetaires (Intermarché) added 0.9 points, reaching 17%, while Lidl’s strong end-of-year recovery signals a promising outlook for 2025.
According to Kantar Worldpanel, the challenge for FMCG manufacturers in 2025 will be to reignite consumer spending through affordable products, engaging marketing, and expanding their reach through new channels.
