NIQ Retail Spend Barometer
Netherlands
NIQ Retail Spend Barometer: Warmer temperatures and a desire for convenience drive consumer spending in the Netherlands
- After a general decline in the second quarter, the market picked up in the quarter from July to September
- Self-care and convenience are decisive factors in FMCG and T&D spending in the Netherlands
Tobacco legislation, warmer weather in the summer months and convenience were the main influencing factors for spending in Fast Moving Consumer Goods (FMCG) and Tech and Durables (T&D) markets in the Netherlands from July to September 2024
After a general decline in the second quarter, the market picked up in the quarter from July to September; with a 3.7 percent growth in FMCG turnover (excluding tobacco) and a 0.4 percent increase for T&D. Frozen and fresh foods, as well as beverages were much more in demand than in the same period of the previous year, reflecting the warm temperatures over the summer. The warmer weather also led to increased sales of T&D products like air conditioning units and electric fans, which consumers used to combat the heat. And while inflation led to higher prices, the price increases were not as high as in the previous year.
Hot summer drives Dutch consumers outside
Consumers in the Netherlands have been spending more time outside in the months between July and September. As a result, the DIY & Home Improvement sector in particular, which includes gardening tools and supplies, grew by 2.0 percent compared to the previous year, while in the rainy second quarter of the year 2024, it experienced a decline of 5 percent. Tools for outdoor use, like pressure washers and hedge trimmers also showed an increase in turnover – 52 percent and 22 percent respectively. This shows the influence that the weather can have on market developments. In addition, the heat also drove sales of air conditioning systems (64 percent increase) and electric fans (63 percent increase), compared to the turnover figures of Q3 2023.
FMCG data reflects the temperature as well. Fresh food (7.1 percent increase), frozen foods (7.0 percent increase), and beverages (3.8 percent increase) all experienced higher turnover, but this effect is most notable for ice cream with a year-on-year growth of 12.7 percent. These figures emphasize that, as with the DIY & Home Improvement sector, the climate can have a significant impact on food and drinking habits and therefore sales.
Convenience and personal care drive spending in both FMCG and T&D
Convenience has been a selling point for a while now, especially in T&D products, and continues to be a decisive factor. Dutch consumers are more likely to spend money on products that combine different features, such as vacuums with integrated wet cleaning features, or electric styling equipment for drying, straightening and curling hair. Overall, spending has marginally increased by 0.4 percent compared to Q3 2023 after a general decline in the first half of the year. This upward trend will likely continue in the last quarter of the year with promotions around Black Friday, Christmas and the end of the year.
The outstanding category in the FMCG sector is personal care with an increase of 8.0 percent. Body care product turnover increased by 8.8 percent in a year-on-year comparison, hair care by 8.4 percent. Personal care has been continuously growing since the start of 2023, showing that self-care is not just a trend but is evolving into a necessity that Dutch consumers elect to spend money on.
“The rising sales we are seeing in T&D and FMCG for personal care and convenience products show that consumers are more likely to spend money on products that make their lives easier and make them feel good about themselves. These trends are here to stay”, says Jasper Bins, Retail Vertical Director Benelux, NIQ and GfK. “We are expecting big promotional events like Black Friday and Christmas to boost sales in both FMCG and T&D. Retailers and manufacturers that position themselves along trending topics like convenience or self-care and who are able to reach consumers with attractive promotions have an opportunity to gain further market share and drive sales.”
Jasper Bins, Retail Vertical Director Benelux, NIQ and GfK