Frankfurt am Main / Nuremberg, Germany – March 14, 2024. In Germany, consumer spending on fast-moving consumer goods (FMCG) as well as tech and durables products (T&D) increased by 5.5 percent in 2023 compared to 2022, amounting to a market total of EUR 394.5 billion in 2023. The higher spending was in particular driven by price increases for food and drugstore products, while at the same time consumers cut back in T&D spending. The new NIQ Retail Spend Barometer aggregates data from both NIQ and GfK, to provide a holistic insight into the market potential and market developments of FMCG and technical consumer goods throughout Germany. 

The NIQ Retail Spend Barometer provides a complete overview of spending in the FMCG sector (everyday products, such as perishable and non-perishable food, beverages and drugstore products) and in the T&D sector (technical consumer goods, household appliances and DIY) in Germany. Based on real sales data, this cross-category and cross-channel big data overview is the first of its kind to date and will be published quarterly in the future. 

Price increases drive spending in the FMCG sector 

For FMCG products, consumers in Germany spent a total of 8.9 percent more in 2023 than in 2022. This increase is mainly due to price increases driven by inflation and higher sourcing costs. Across all categories, the year-on-year increase in spending in the first half of 2023 was stronger than in the second half of the year. A slight increase in sales volume of 1.5 percent was achieved for the first time in the fourth quarter. The drivers of these developments are discounters and drugstores – traditional supermarkets were the only sales channel not to experience any sales growth. 

In 2023, retailers increasingly focused on special offers such as promotions, which increased in proportion, especially in the food sector. This enabled retailers to achieve a pull effect leading to higher shopping frequency. Private labels are on the rise as well: In nearly all categories, the market share of private labels increased, both in terms of sales volume and revenue. And, in the categories Personal Care, Home Care and Pet Food, both stationary drug stores and online retailers were able to increase their revenue due to higher shopping frequency and larger basket sizes. 

Consumers are saving on T&D products 

The situation is different for T&D products such as household appliances, technical consumer goods and DIY supplies. Here, retail spending fell by 1.7 percent in 2023 compared to 2022. The DIY sector in particular experienced a sales decline of 4.4 percent. Household appliances  and technical consumer goods  also recorded declining sales (-2.4 percent and -1.6 percent respectively) in 2023. Consumers are increasingly focusing on replacing defective products instead of buying new products or upgrading still-functioning appliances. This can be attributed to a decline in consumer sentiment, an associated propensity to save and a certain saturation in the tech sectors, which were in high demand during the pandemic. 

One exception is the small household appliances sector, which grew by 1.5 percent in 2023 compared to the previous year. Innovative, multifunctional products performed better than the market average and were able to achieve a price premium. These include cordless handstick vacuum cleaners, deep and air fryers as well as hair care products in particular. 

Price and brand management will determine success in 2024 

“The NIQ Retail Spend Barometer illustrates that 2023 was not an easy year, especially for German retailers and manufacturers in the T&D sector. However, FMCG retailers such as supermarkets are also feeling the changes in shopping behaviour in times of inflation and uncertainty as well as an increasing competition for consumers’ budgets between channels and competitors,” says Oliver Schmitz, Head of Retail DACH at NIQ and GfK. “In order to remain attractive and competitive in 2024 and saving important margins, retailers will have to manage their prices even more strongly and dynamically due to inflation and other price increases. This includes measures to introduce or drive customer-centered category management as well as expansion into new product ranges, channels or even additional regions and countries to support their growth strategy. Our data shows which growth categories have prevailed against the market in 2023 and where the potentials for 2024 lie.” 

“Market dynamics and consumer behavior are changing ever faster. In a competitive environment, fragmented data and a dose of gut feeling are no longer enough,” says Michael McLaughlin, President, Global Retail at NIQ. “That’s why we use the Full View™ to offer our clients a comprehensive, data-based understanding of market developments and clear, actionable recommendations for future growth.” 

For more information, please visit NIQ Retail Spend Barometer Germany (nielseniq.com) and NIQ Retail Spend Barometer (nielseniq.com).

About the Study 

The NIQ Retail Spend Barometer examines consumer spending on FMCG and T&D products in Germany. 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 and DIY. The data comes from NielsenIQ and GfK retail market measurement, which together measure the sales of over 350,000 retail partners worldwide.

Media Contacts

​​Corina Kirchner​, T +​49 911 395 4570​, ​corina.kirchner@gfk.com​ 

Julia Mayer, julia.mayer@nielseniq.com  

About 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 unparaAbout lleled 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/de.

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.