New NIQ Retail Spend Barometer provides a comprehensive overview of the FMCG and T&D market in Austria
Vienna, September 11, 2024 – In Austria, private spending on everyday consumer goods (FMCG) and technical durables (tech & durables) increased by 2% in the second quarter of 2024 compared to the same period last year. This is reflected in a total turnover of 8.8 billion euros. While consumers spent more on everyday goods, they saved on technical devices. This is according to the new NIQ Retail Spend Barometer. It combines data from the NIQ and GfK retail panels to provide a holistic insight into market potential and developments in Austria and many other countries.
The hot April 2024 and the European Football Championship (EURO 2024) led to noticeable increases in sales in various categories. Frozen ice cream benefited from the summer weather and recorded an 11% increase in sales. The European Championships also influenced sales figures for alcoholic beverages, savory snacks, some confectionery and frozen pizza snacks. Fresh fruit also increased by 8%, driven by the increased use of discount offers.
One special feature is the exceptionally high density of supermarkets in Austria, which is twice as high as in Germany. This has led to increased competition among supermarkets, many of which are responding with promotions – every third euro is now spent on special offers. Sales of energy drinks increased by 8 percent thanks to targeted promotions. Since inflation, the importance of discounts has continued to grow, with not only full-range retailers but also discounters increasingly relying on promotions such as 1+1.
Austrian consumers buy very selectively: they deliberately wait for the ideal time to benefit from the best offers,” says Oliver Schmitz, responsible for retail at NIQ/GfK in Austria, Germany and Switzerland. “It is therefore essential for retailers to develop a market- and competition-oriented pricing strategy in combination with attractive promotions and to implement it successfully with the help of dynamic pricing tactics. This is particularly important during high-turnover promotional periods such as Christmas and Halloween in order to increase sales in this highly competitive market environment and secure important margins with the right pricing.”
TV sector benefits from the European Football Championship 2024, rest of T&D market under pressure
The situation is different for T&D products such as household appliances, technical consumer goods and DIY supplies. Here, retail spending fell by 0.3% in 2024 compared to the same quarter of the previous year. Segments such as mobile computing, monitors and smartphones in particular recorded significant declines in sales due to saturation effects, with losses of 6% for mobile computing, 13% for monitors and 10% for smartphones.
Driven by the European Football Championships, sales of TV sets were a positive exception, increasing again in the second quarter of 2024 after a long lull. After years in which major sporting events had little positive impact on T&D sales, the European Football Championship 2024 provided an upturn in sales of flat-screen televisions in particular. Products such as air purifiers (33% more sales) and air conditioners (65% more sales) also recorded significant sales growth thanks to the hot summer months.
“Relevant innovations succeed in creating new incentives to buy. The industry has been doing this for many years now, particularly in the small domestic appliances (SDA) segment. In the last few quarters in particular, these innovations have been launched very quickly and successfully, especially via social media,” says Oliver Schmitz. “In a market that is becoming increasingly saturated, it is important to react flexibly to trends and continuously adapt strategies to consumer needs. Our combined market and consumer data provides companies with a “full view”, i.e. a comprehensive overview of the Austrian market, enabling them to react to changes at an early stage. As a result, we offer clear recommendations for the targeted adaptation of their strategies.”
About the study
The NIQ Retail Spend Barometer examines private spending on FMCG and tech and durables products in Austria. It records the actual sales figures and measures the development of purchasing trends. The daily consumer goods covered include durable and fresh food, beverages and drugstore goods; the tech and durables categories include technical consumer goods, household appliances and DIY supplies.
The data comes from the retail analyses of NielsenIQ and GfK, which together measure the sales of over 350,000 retail partners worldwide.
Press contact: Julia Mayer, julia.mayer@nielseniq.com
