The Retail Spend Barometer is the new indicator created by NielsenIQ revealing how much French consumers spend on FMCG, technology and durable goods. Benchmark is available across 6 European key markets such as Germany, UK, the Netherlands, Italy, Spain and France.  

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. This represents a two-year increase of +14.1% (between Q1 2022 and Q1 2024). Aside from this dynamic trend, French shoppers reduced still their purchases of Technology & Durable products (T&D) : -2.7% Q1 2024 vs Q1 2023. 

Paris, May 6, 2024.  

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.  

In fact, sales of FMCG products are increasing most significantly (+3.2% between Q1 2024 vs. Q1 2023).  On the other hand, French consumers slightly reduced their spending on Tech & Durables products (-2.7% between Q1 2024 and Q1 2023).  

The NIQ Retail Spend Barometer combines data from NielsenIQ and GfK. It provides a comprehensive view of retail sales in France and spending on FMCG products (food, beverages, fresh produce and hygiene products) and Tech & Durable goods (domestic  appliances, audio-video, DIY gardening, etc.). This cross-category multi-channel overview, based on actual sales data, is unique on the market.  

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.  

According to the NIQ Retail Spend Barometer, 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%.  

Vincent Cornu, Director Retail Services France NielsenIQ – GfK, comments on the FMCG trends: “Two key facts: the FMCG market is entering 2024 with a more moderate increase than in 2023. For the first time in two years, staple product categories are posting higher sales growth than food products.” 

“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.”, he adds.  

Constraints remained on Tech and Durable purchases 

On the first release of the RSB, NielsenIQ revealed that T&D spendings was decreasing in 2023 results. 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%.  

Among the categories, purchases in DIY-Construction-Gardening and Petcare categories saw the biggest decline: -5.0%. Sales of Construction products are dragging the market down: -13% in revenues, in line with the slowdown in the local real estate market. However, recent public policies are encouraging improvements of housing energy performance. It should boost sales of Sanitaryware products in the months ahead, particularly in the Heating/Hot Water Systems category.  

Lastly, spending on technical goods fell by -2.8%. Spending on domestic appliances remained almost stable (-0.7%).  

“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).  

Regarding the DIY market, garden products are the only categories growing in the first quarter of 2024: +4% in sales, extending the good performance of 2023 (+3%)“, says Vincent Cornu.