NIQ Retail Spend Barometer
Italy
In the first quarter of 2024, Italian households spent €45.8 billion on consumer goods
- Total turnover for FMCG and Tech & Durables products in January, February and March 2024 was €45.8 billion (+0.7% vs Q1 2023)
- +3% in value for FMCG and slowdown in inflation. Reached 31 billion euros in spending
- The slowdown in demand for T&D is confirmed: -3.8% with 14.7 billion euros in revenues
In Italy, consumer spending on fast-moving consumer goods (FMCG) and Tech & Durables goods (T&D) in the first three months of 2024 recorded a slight increase in sales of 0.7% compared to the same period in 2023, recording a total turnover of 45.8 billion euros. The trend was determined by changes in Italians’ consumption choices and the deceleration – compared to 2023 – appears more evident in non-food goods, while for the T&D sector the slowdown in demand affects all the main sectors. NIQ Retail Spend Barometer combines data from NIQ and GfK to measure the turnover of FMCG and Tech & Durables goods purchased in stores in Italy.
Inflation decelerates in 2024 and sales growth slows compared to 2023
In January, February and March 2024, FMCG generated sales of €31 billion euros. The increase in sales value of +3% – compared to the same quarter of 2023 – indicates that the sector continues its growth path albeit at a slower speed than the previous year (+9.5%), with a slowdown mainly determined by the fall in inflation rates.
“During the first quarter of 2024, the fall in the inflation rate led to a slowdown in growth in all the main FMCG sectors, although they recorded positive values. Despite the cooling of prices, the trend in volumes remains negative and consumer demand appears weak, although sales continue to grow. In general, the months of January, February and March confirm profound changes in the consumption choices of Italians and the slowdowns appear more evident on non-food goods and less on basic necessities”.
Romolo De Camillis, Retailer Director NIQ Italia
Consumer spending on Tech & Durable continues to contract
After the decline recorded during 2023 (-1.1%), the Italian T&D market started the year with a further decline. The first quarter of 2024 closed with a total turnover of €14.7 billion euros, marking a decrease of -3.8% compared to the same period last year.
“The data for the first months of 2024 confirm the slowdown in demand for Tech & Durables goods. This phenomenon could result from a change in the priorities of Italian consumers, who after having invested large sums in improving their homes and updating their technological equipment, are now directing their consumption towards other categories. In addition, primary and obligatory expenditure chapters such as the cost of fuel, energy and mortgage payments continue to weigh on Italians.”
Ivano Garavaglia, Head of Retail at GfK
