The FMCG market in Portugal saw a 4.5% drop in volume and 0.5% in value in March 2017, with Portuguese consumers buying less in hypermarkets, reports Jornal de Negocios.
However, this decrease was offset by increased consumption outside the home, mainly in restaurants, which was partly due to tourism, according to a study by Centromarca - the Portuguese brands association.
The study reports that the future of the FMCG sector depends on the diversification of supply, with greater involvement of the large retailers in campaigns, discounts and private label brands, and the introduction of new formats, such as online and neighbourhood stores in the big urban centres.
FMCG Decline
Centromarca reveals that the decline in purchases in the hypermarket channel is especially notable in terms of volume in the food category (-6%), pet food (-5.3%), personal hygiene and beauty (-3.1%), and home cleaning (-2.5%), with beverages showing zero growth.
Fresh products are the most purchased in the food category, followed by dairy products. The ready meals segment was the only one to register growth (+3.4%) compared to 2016.
Another conclusion of the report is that private label brands have been recovering against the major brands, although both have seen lower sales compared to 2016. In terms of volume, sales of private label goods accounted for around half of the market (49%) in the first quarter of 2017.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
