- Warm weather in Q3 2024 influenced spending for both FMCG and T&D products.
- NIQ and GfK combine their data to provide holistic insights into the FMCG and T&D markets in Belgium.
Leuven, November 20, 2024 – Consumer spending on fast-moving consumer goods (FMCG) as well as tech and durables products (T&D) increased by 1,3 percent in the year to Q3 2024 compared to the same period in 2023. In the quarter from July to September 2024, this corresponded to a market total of EUR 9,4 billion. The higher spending in 2024 is due to both price increases caused by inflation as well as an increase in turnover. In addition, T&D spending was influenced by the unusually warm weather. The new edition of the NIQ Retail Spend Barometer aggregates data from both NIQ and GfK to measure the turnover of FMCG and T&D products sold in retail stores in Belgium.
The NIQ Retail Spend Barometer is based on real sales data and provides a complete overview of consumer spending in the FMCG (everyday products, such as perishable and non-perishable food, beverages and drugstore products) and in the T&D (technical consumer goods, household appliances, DIY and products for home improvement) sectors in Belgium. This analysis is the first of its kind in Belgium to date and will be published quarterly from here on out.
FMCG: Inflation forces consumers to be cautious, while premium products increase in popularity
Between July and September 2024, consumers in Belgium only spent a total of 0,3 percent more on FMCG products than in the same period in 2023. One reason for the near standstill in spending is a lower inflation rate compared to 2023 which caused prices to stagnate. The categories that were affected the most by inflation were pet products (price increase of 15 percent price), dairy products (price increase of 14.8 percent) as well as snacks (price increase of 14.5 percent). Inflation is forecast to pick up stronger in early 2025, which will likely cause prices to surge again. However, inflation only has a limited influence on FMCG products since food is a necessity. Q3 was dominated by warm weather, causing the sales of fresh foods to increase (3.0 percent) as well. The second biggest category experiencing growth is personal care (2.2 percent), which has been an ongoing trend throughout the year and is likely to continue in the coming months as well.
While prices in supermarkets were mostly stable throughout 2024, the cost of eating out has increased. Consumers reacted to the higher prices by adapting their shopping behavior. Eating out in restaurants is becoming more and more of a luxury. As a result, premium products that are perceived as healthy or have additional functionalities (like high protein, vegan or alcohol-free) gain in popularity as consumers switch to treating themselves to luxurious meals at home.
In addition, consumers in Belgium are more likely to spend money on products and foods with claims like “high protein”. For example, in summer 2024, dairy products with a “high protein” claim were sold by 78 percent more points of sale than in summer 2021. In the year to date, the sale of cow milk has decreased in volume, while more plant-based milk was sold. The beverage sector has also experienced an increase in non-alcoholic beers and drinks as well as an increase in the sales of products of smaller breweries. These trends show that consumers choose to spend money on healthy products for a balanced diet and are likely to continue into the next quarters.
A new Belgian tobacco legislation will take effect at the start of Q2 2025. The law states that tobacco products cannot be displayed in supermarkets and shops anymore and is expected to affect the sale of tobacco products in retail. While sales of these products are stable with a small increase of 1.1 percent in Q3 2024, they will likely decrease over time.
Tech products: Consumers prepare for end-of-year promotions
After a drop in the second quarter of 2024, T&D spending is rising again in Q3 with a rate of 2.0 percent. This trend can mainly be attributed to the Home Appliance sector, which grew by 4.7 percent. In addition, the warm weather over the summer led to increased sales of air conditioning units and electric fans. It also led to an increased popularity of DIY and Home Improvement products such as gardening supplies. Overall, this sector grew by 1.4 percent.
By contrast, technical consumer goods experienced a total 0.1 percent decline in turnover, due to market saturation in important categories such as TVs, for which there is less demand, as people prefer streaming on mobile devices such as laptops, tablets and smartphones. Spending in this section is divided between low-end product options and those with premium features, which are experiencing an above average growth. This category is expected to pick up stronger in Q4 with promotions around Black Friday, Christmas and end-of-year offers. T&D spending is very promotion-driven, accounting for the fact that consumers wait until the end of the year to make big purchases.
Consumers continue to value innovation. Air fryers (with a 26.3 percent increase) and wet & dry vacuum cleaners (with a 42.8 percent increase) are among the most popular categories with more and more manufacturers combining different features into one product. There was also an increase in the turnover of VR glasses (14.8 percent), a small category that is continuing to grow.
Combined data enables comprehensive insights
“With the Full ViewTM, as shown by the NIQ Retail Spend Barometer, we are in a unique position to offer retailers and manufacturers a 360-degree view of the market. The data allows us to identify ongoing trends like personal care and seasonal increases, as seen with fresh foods and air conditioning,” says Jasper Bins, Retail Vertical Director Benelux, NIQ and GfK. “With this comprehensive overview, retailers and manufacturers can identify market opportunities, adapt their strategies and therefore maximize their outcomes.”
“The Belgium market is dynamic, and consumer behavior is changing ever faster. In a competitive environment, fragmented data and gut feelings are not enough to create a lasting impact,” says Michael McLaughlin, President, Global Retail at NIQ. “That’s why we use The Full View™ to offer our clients a comprehensive, data-driven understanding of market developments and clear, actionable recommendations for future growth.”
About the study
The NIQ Retail Spend Barometer examines consumer spending on FMCG and T&D products in Netherlands. It tracks real sales figures and measures changes in past purchase trends. The FMCG categories covered include food, groceries, perishables and near-food, and the T&D categories include technical consumer goods, household appliances, DIY and clothing. The data comes from NielsenIQ and GfK retail market measurement, which together measure the sales of over 350,000 retail partners worldwide.
About GfK
For 90 years, clients around the world have trusted us to provide data-driven answers to key questions for their decision-making processes. We support their growth through our comprehensive understanding of buying behavior and the dynamics that influence markets, brands, and media trends. In 2023, industry leaders GfK and NielsenIQ have merged to offer their clients unparalleled global reach. With a holistic view of retail and the most comprehensive consumer insights, provided by forward-looking analytics on state-of-the-art platforms, GfK is driving “Growth from Knowledge.”
About NIQ
NIQ is the world’s leading consumer intelligence company, delivering the most complete understanding of consumer buying behavior and revealing new pathways to growth. In 2023, NIQ combined with GfK, bringing together the two industry leaders with unparalleled global reach. 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 View™.
NIQ, is an Advent International portfolio company with operations in 100+ markets, covering more than 90 percent of the world’s population. For more information, visit www.NIQ.com.
