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Press Release

NIQ Retail Spend Barometer: Private spending in Germany continues to rise in the second quarter of 2024   

Press Release

NIQ Retail Spend Barometer: Private spending in Germany continues to rise in the second quarter of 2024   



Decline in inflation and European Football Championships drive consumption  

Frankfurt am Main / Nuremberg, September 11, 2024 – In Germany, private spending on everyday consumer goods (FMCG) and consumer durables (tech & durables) rose slightly by 0.8% in the second quarter of 2024. While the FMCG market grew, the overall market for technical consumer goods declined slightly compared to the same period last year. Based on the third NIQ Retail Spend Barometer, the retail experts from NIQ/GfK analyze which factors played a role and how the European Football Championship affected the development.  

Total sales of food and drugstore products in Germany rose by 2.4 percent in the second quarter. The reasons for this are the falling inflation rate and an overall higher propensity to buy. Drugstores in particular developed positively. The personal care category, for example, recorded sales growth of 6.1%.  Tobacco products also contributed to growth with an increase of 4.4% compared to the same period last year. The cigarette product group increased by 122 million euros in the second quarter. The increase is purely price-driven, with sales in packs declining. The situation is different for e-cigarettes: These are growing in terms of turnover and sales, driven primarily by sticks, the core component of the e-cigarette.    


Rainy European Championships: consumption of beer and ice cream down, snacks on the rise  

Overall, the EM effect for FMCG was not as strong as expected. Consumption of beer and ice cream, typical summer categories, declined during the mostly rainy European Championships. Demand only rose again from the sunnier calendar week 26, i.e. towards the end of the tournament, underlining the importance of weather conditions for consumption.   

The snacks category saw a clear increase in sales (4.1% growth). In June, consumers bought significantly more snacks than in the other months of the second quarter – the NIQ/GfK experts clearly attribute this effect to the European Football Championship.


Tech & Durables: Some categories clearly benefit from the European Championships  

With turnover down 2.8% on the second quarter of 2023, the market for technical durables declined once again. However, the individual sectors developed very differently.   

The sharp rise in sales figures in the consumer electronics sector is clearly attributable to the European Championships, as manufacturers boosted their business with targeted promotions during this period. The television category benefited particularly in this area (21% increase in sales). Extremely large displays with a screen diagonal of more than 74 inches were particularly popular and saw a 58% increase in sales compared to the same period last year. Small household appliances such as air fryers, smartphones and mobile PCs with energy-saving OLED displays also recorded an increase in sales.   

The IT category, which has not yet recovered from the reluctance to buy during the inflation peak, again performed negatively. The DIY and home improvement category also recorded a negative trend (11% drop in sales). Here, too, the weather had a significant impact: due to the mild temperatures in the first quarter, sales in this area in the period from January to April 2024 were significantly higher than in the previous year. Purchases were brought forward to this period, followed by the resulting decline in May and June. The situation is similar for barbecues: this category also recorded rising sales in March and April of this year. In the unexpectedly rainy months of May and June, demand fell in comparison to the previous months – even the EM was unable to reverse this effect.


EM as a positive stimulus for individual categories – market stabilization to be expected? 

The development of the T&D and FMCG market is stable with slight sales growth of 0.8%. The falling inflation rate in particular contributed to the increased propensity to buy. However, the European Championships did not have a cross-category effect. Instead, only individual product categories, such as snacks and consumer electronics, benefited from the major sporting event. The European Championships thus caused short-term euphoria among some retailers – but it remains to be seen whether the market stabilization will last in the long term.   

The current consumer climate from GfK and the Nuremberg Institute for Market Decisions (NIM) paints a different picture: consumers tended to save more again in August, while income and economic expectations fell noticeably.   

Nevertheless, the European Championships have shown one thing: short-term advertising measures and discount campaigns around major events remain an important lever for retailers – and should be used against this backdrop in particular. 

“Promotions during the European Championships had the desired effect in many product areas. Consumers increasingly resorted to discounts. This shows us once again that it pays off to make attractive offers to consumers at the right time. At the end of the year, for example, Black Friday or Christmas are ideal for this,” explains Oliver Schmitz, Head of Retail DACH at NIQ/GfK. “Retailers should also incorporate social media more strongly into their marketing strategies. Our analyses have shown that users are becoming increasingly aware of products on social networks – especially in the small electrical appliances sector.”  


To the study

The NIQ Retail Spend Barometer examines private spending on FMCG and tech and durables products in Germany. It records the actual sales figures and measures the development of purchasing trends. The everyday consumer goods covered include durable and fresh food, beverages and drugstore goods; the tech and durables categories include technical consumer goods, household appliances and DIY supplies.  

The data comes from the retail analyses of NielsenIQ and GfK, which together measure the sales of over 350,000 retail partners worldwide.  

Press contact: Julia Mayer, julia.mayer@nielseniq.com