Lisbon – November 25 2024. The expenditure on fast-moving consumer goods (FMCG) and tech and durables (T&D) in Portugal has risen by 7.3 per cent between July and September 2024 compared to the same period last year. Total spending across both segments accumulated to 6.5 billion Euros. This uptake is caused by both inflation-related price increases and the sales volume achieved. The results are significantly influenced by the increasing convenience trend in food and the growing importance of private labels. The new NIQ Retail Spend Barometer combines data from NIQ and GfK to provide the most comprehensive insights possible into market potential and developments in Portugal. In this edition of the NIQ Retail Spend Barometer, the experts from NIQ and GfK reflect the developments in the FMCG and T&D sectors. This gives retailers the basis for valuable insights for market research and enables them to optimize their offering.
In the third quarter of 2024 – i.e. from July to September – spending on FMCG products in Portugal rose by 8.2 per cent, while the increase in T&D goods was only 2.9 per cent compared to the same period last year. The growth in fast-moving consumer goods is mainly due to two important trends: First, more and more Portuguese consumers are avoiding restaurant visits due to the strong rise in prices in the restaurant business. Instead, they prefer quick and convenient meal preparation at home. This has led to a significant increase in spending on ready meals and components in supermarkets and discount stores. For example, sales of chilled pasta have increased by 18 per cent in volume, of fresh prepared vegetables by 11.7 per cent and of ready meals from the refrigerated counter by 4.5 per cent.
There was a corresponding increase in spending on frozen ready meals (7.1 per cent), frozen potatoes (8.3 per cent), frozen vegetables (2.9 per cent) and ice cream (2.4 per cent). However, the latter saw a price increase of more than 5 per cent, bringing the total value of additional spending to 7.6 per cent. ‘And we observe a similar trend for products used to prepare desserts’, explains Ana Barbosa, Retail Vertical Director at NIQ in Portugal. ‘Although the quantities sold here only increased by 7 per cent, the total value of the additional expenditure amounts to almost 16 per cent due to a price increase of more than 8 per cent.’
Private labels are gaining in importance
The second important trend in the Portuguese FMCG market is the growing importance of private labels. These products are significantly cheaper than regularly branded items. For example, the volume of perfume sales increased by two-thirds in the third quarter of 2024. However, since the average price level in this product segment has fallen by more than 10 per cent due to the cheaper store brands, the total value of additional expenditure on perfume is just under 50 per cent. A similar trend can be seen in make-up and hand and face creams, given the fact that retail chains are increasingly investing in beauty products for their own brands.
A significant decline in volume sales can be seen in Portugal for most alcoholic beverages. This applies equally to liqueur, sparkling wine, aperitif drinks, port, brandy, whiskey and white spirits. Here, the main reasons are the significant price increase and changes in consumer habits. Chocolate represented the highest price increase in the Portuguese FMCG market. The average price of cocoa products rose by almost a quarter. This led to an increase in spending of almost 20 per cent in value terms, although the sales volume of corresponding products fell by 3.5 per cent.
T&D products: hot air fryers are
booming
T&D products saw an increase in spending in the third quarter, similar to the FMCG segment, For example, sales of DIY supplies grew by 9.3 per cent, and of household appliances by 4.1 per cent. Hot air fryers serve as a good example of a product driving this trend. The increase in technical consumer goods was somewhat lower, with sales rising by just 1.1 per cent. This is because PCs, monitors, webcams and other computer accessories were increasingly purchased during the COVID-19 pandemic and do not need to be replaced yet. In addition, data storage is increasingly shifting to the cloud, thus fewer and fewer physical storage devices are needed.
‘We expect to see an ongoing massive increase in spending in the fourth quarter in both the FMCG and T&D segments. Black Friday and the Christmas season will strongly boost sales. However, sustainability plays a subordinate role in consumer behavior. Consumers in this country only accept higher prices for environmentally friendly products if there are other advantages associated with them,’ explains Pedro Oliveira, Retail Manager for Tech & Durables at NIQ/GfK in Portugal.
About the study
The NIQ Retail Spend Barometer examines consumer spending on FMCG and T&D products in Portugal. 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.
Press contact
Corina Kirchner corina.kirchner@nielseniq.com
About GfK – an NielsenIQ company
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.
