NIQ Retail Spend Barometer
France
58.3 billion euros spent in France on FMCG and Tech & Durable goods over Q1 2024
- French consumers spendings raised €58.3 billion in the first quarter of 2024 (Q1 2024), an increase of +1.6% on the first quarter of 2023 (€58.3 billion vs. €57.4 in 2023).
- Comparing the two universes, sales of fast-moving consumer goods (FMCG) are rising more sharply (+3.2% between Q1 2024 and 2023).
- Spending achieved almost €42.9 billion, versus €41.5 billion in Q1 2023.
French consumer spendings on FMCG and T&D goods reached 58.3 billion euros in Q1 2024. A slight increase of +1.6% compared to the first quarter 2023. Although inflation has slowed down considerably, it still has an impact on French consumers’ behaviors.
Inflation slows down and FMCG spending returns to near-normal levels.
While the FMCG market ended 2023 with strong growth of +6.1% in Q4, it starts 2024 with a more moderate rise, reaching only half the previous figure at +3.2% in value. Food purchases (groceries and beverages) rose by +3.3% in revenue. The strongest increase was recorded by the “DPH* – petfood” categories, with a +5.1% rise, followed by Fresh products (+1.3%). The fall in the inflation rate is limiting the rise in FMCG spendings in the first quarter of 2024. Compared with Q1 2023, the total increase is +3.2%, compared with +14.1% in Q1 2022. The Barometer also reveals that FMCG spending breaks down as follows: grocery and beverages account for 72%, DPH and petfood for 12%, and fresh produce for 16%.
Constraints remained on Tech and Durable purchases
The last quarter of 2023 was marked by a decline of -2.9%. The first quarter of 2024 follows this trend, with spending down -2.7% compared to Q1 2023. In Q1 2024, the French spent 15.5 billion euros on technological and durable goods. Sales generated by DIY/gardening accounted for 34%, technical goods (consumer electronics, telecoms, IT/office) for 30% and domestic appliances for 16%.
“For FMCG, it is clear that the combination of lower inflation rates and the shift in sales dynamics towards staple categories, resulting from the implementation of the ‘Descrozaille Law’, could have an impact on the second quarter of 2024, resulting in the lowest value growth observed in recent years. In T&D, Small domestic appliances offered a breath of fresh air to the market. Sales rose by +6% in value over the quarter. This dynamic is led by oil-free deep fryers (+207% i.e €33 million in additional sales) and wet & dry vacuum cleaners (+27% i.e €7 million).”
Vincent Cornu, Director Retail Services France NielsenIQ – GfK
