Circana, a leading advisor on the complexity of consumer behaviour, today launched its latest biannual FMCG Demand Signals study of the biggest consumer buying trends across the six largest grocery markets in Europe.
According to the findings, FMCG growth across EMEA markets is being buoyed by strong performances in Spain and Italy, where domestic consumption and a favourable investment climate are accelerating recovery.
Conversely, the UK, Germany and France continue to experience slower recoveries, impacted by economic volatility and tactical retailer actions that are contributing to a patchwork recovery across the region.
Sluggish Demand
The analysis – across 230 CPG categories, with 2,000 product segments – reveals a complex recovery phase, as unit sales grow by 0.3%, despite sluggish demand in key Northern European markets.
The FMCG sector has climbed by 4.4% over the last year, reaching a value of €673 billion – up from €636 billion in 2024 – for the 12 months to the end of June 2024, compared to the previous 12-month period.
“While Southern Europe has shown resilience, the overall market recovery is uneven,” said Ananda Roy, global SVP, strategic growth insights, Circana.
“Spain and Italy are showing significant momentum, but the UK, France and Germany remain laggards.”
Private-Label Growth
Category wise, growth is largely driven by private labels, which now hold a 39.2% value share worth €263 billion – up by 0.5 percentage points on 2023 figures.
Across the Continent, private-label strength continues to reshape competitive dynamics, with opportunities for growth for traditional brands still evident.
Edible and non-edible categories alike are feeling the impact, as retailers innovate, improve quality, and emphasise sustainability and availability, which are core to private-label transformation.
While private-label momentum is expected to slow in 2025, Circana’s analysis explains that brands can remain competitive by focusing on innovation at scale and optimising their range and assortment beyond promotions.
