- FMCG spending in Q3 2024 picked up to 3.7%, up from 1.2% in Q2, with the rate of decline in Tech & Durables (T&D) slows to -1.7% with consumers opting for more considered purchases
- Personal care (10.7%) and homecare (8.7%) categories drive growth in FMCG, while high-end smartphones and computing (+1%) categories experience the first sales growth since lockdown
London, UK, 07 November 2024: UK shoppers spent a total of £53.7bn on FMCG in Q3 2024, this is a 3.7% uplift on the same quarter last year. New data reveals a silver lining for the Tech & Durables (T&D) market, with the rate of decline slowing to -1.7%, this is down from -2.8% recorded in Q3 2023. This is according to new insight from the NIQ’s Retail Spend Barometer, which has been drawn from GfK intelligence. The tool measures the turnover in sales of FMCG and non-food consumer products sold in retail stores across the UK.
The NIQ Retail Spend Barometer provides a complete overview of UK spend for the FMCG sector (ambient and fresh food and drink, healthcare, toiletries, homecare and general merchandise) and for the T&D sector (technical consumer goods, household appliances and DIY). This cross-category and cross-channel overview is based on real sales data and is published on a quarterly basis to illustrate household spending priorities.
FMCG spending slightly rebounds in Q3
NIQ data shows that value growth for the FMCG sector increased from +1.2% in Q2 to +3.7% in Q3, driven by an uptick in the personal care (10.7%), homecare (8.7%), fresh food (5.8%) and snacking (5.1%) categories. Beverages returned to growth to +2.1%, from a decline of -0.9% in Q2. Meanwhile, the biggest declines were experienced in tobacco (-7.9%), and paper products (-4.1%).
This rebound in growth is largely attributed to the expected sales boost from the Euros and Olympics which took place in July and August, and slightly sunnier weather compared to last year. However, despite improved consumer confidence in Q2, this stalled in Q3 as economic and financial uncertainty continued to impact consumers. Within FMCG, lower inflation is however now leading to a growing increase in volume sales growth.
NIQ data also reveals a narrowing gap between private label and branded products as the growth rates indicate shoppers are now starting to treat themselves to small indulgences once again. In Q1 2024, FMCG branded unit growth was recorded at 0.7% compared to +3.1% for private label. However, in Q3 branded unit growth sits at 1.1% versus +1.7% for private label.
Signs of positivity for the Tech & Durables market
Despite another challenging year so far for the Tech & Durables market, there are signs of positivity with a slower decline (-1.7%) in Q3 2024, compared with an overall decline of -3.5% for the rolling year to date. This paints a less bleak picture from the -4.5% reported in the previous quarter. The biggest drag in the category was home appliances (-6.2%), which declined further from -6.1% in Q2.
Yet with HMRC reporting an uptick in UK house sales, buying a new home triggers needs from DIY and garden equipment. This resulted in a more stable performance for the DIY & home improvement (+1.0%) category in Q3. Technical consumer goods (-1.4%) also fared better than last quarter (-5.2%) and was driven by a demand for high-end smartphones, and computing (+1%), which has seen a resurgence this quarter for the first time since lockdown.
Ben Morrison, Retail Services Director UK & IRE at NIQ, said: “The first eight months of the year so far have been more optimistic compared to 2023, but shoppers remain cautious. We are seeing more considered purchasing, particularly within T&D as consumers opt to replace products when they must rather than upgrade a working one. This also plays to the desire for more sustainable living – beyond just energy efficiency – which is adding to the decision process. When it comes to upgrades, credit schemes offer immediate gratification and are used more often by those on higher incomes to enable upgrades for non-essential big-ticket items”.
Morrison concludes: “As for FMCG, retailers will be pleased to see a slight increase in the rate of growth in the sector in Q3, largely boosted by the big sporting events over the summer. With the gap closing between branded and own label items, shoppers are open to spending on certain items. However, building financial resilience remains a challenge for consumers. According to GfK’s Consumer Confidence Barometer, a quarter of consumers reported they were ‘just managing’ at the end of Q3 and 1 in 3 said they were unlikely to be able to save in the year ahead. Shoppers therefore remain cautious, so as we enter the golden quarter, promotions across retailers are going to be key in persuading savvy shoppers to trade up.”
About the Study
The NIQ Retail Spend Barometer examines consumer spending on FMCG and T&D products in the UK. It tracks real sales figures and measures changes in past purchase trends. The FMCG categories covered include food, groceries, perishables and near-food (Healthcare, Toiletries, Homecare and General Merchandise) and the T&D categories include technical consumer goods, household appliances and DIY. The data comes from NielsenIQ and GfK retail market measurement, which together measure the sales of over 350,000 retail partners worldwide.
About NIQ
NielsenIQ (NIQ) is the world’s leading consumer intelligence company, delivering the most complete understanding of consumer buying behavior and revealing new pathways to growth. NIQ combined with GfK in 2023, bringing together the two industry leaders with unparalleled global reach. Today NIQ has operations in more than 95 countries covering 97% of GDP. With a holistic retail read and the most comprehensive consumer insights—delivered with advanced analytics through state-of-the-art platforms—NIQ delivers the Full ViewTM.
NIQ, is an Advent International portfolio company with operations in 100+ markets, covering more than 90% of the world’s population. For more information, visit niq.com.
About GfK
GfK – An NIQ Company
GfK has earned the trust of our clients around the world by solving critical questions in their decision-making process. In 2023, GfK combined with NIQ, bringing together the two industry leaders with unparalleled global reach. Together, we fuel client’s growth by providing a complete understanding of their consumers’ buying behavior, and the dynamics impacting their markets, brands and media trends. With a holistic retail read and the most comprehensive consumer insights – delivered with advanced analytics through state-of-the-art platforms – NIQ and GfK deliver the Full View™.
For more information, visit gfk.com and niq.com
Media Contact
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