- The third quarter of 2024 witnessed a decline in overall spending, with turnover dropping by -1.4%.
- The most significant decrease was observed in Technical & Durable Goods (T&D), which fell sharply by -6.1%, while spending on Consumer Products (FMCG) showed a modest recovery, growing by +0.5%.
- Several factors contributed to these disparities, including deflation, the impact of the Olympic Games, unfavorable weather conditions, and the effects of the Descrozaille Law.
Paris, 25 November 2024. According to the NielsenIQ Retail Spend Barometer (NIQ) for the third quarter of 2024 (Q3), French consumer spending on FMCG and Technical & Durable Goods (T&D) totaled nearly €61.5 billion. This represents a turnover decline of -1.4% compared to Q3 2023, though it shows a smaller decrease than the -2.8% recorded in Q2 2024.
“The Olympic Games period boosted consumption of FMCG categories like snacks, fresh foods, and beverages, as well as technological products like TVs. However, this momentum has tapered off for some categories,” notes Vincent Cornu, Director of Retail Services France at NielsenIQ – GfK. “Despite ongoing deflation, a backdrop of gloomy weather, and political and economic instability marking the summer and back-to-school season of 2024, French consumers have made careful spending decisions in Q3. The growing performance of private labels is a trend to watch in the coming months. Will the holiday season, typically associated with indulgent shopping, change the spending landscape for French consumers? The next Retail Spend Barometer will reveal the answer.”
Consumer products (PGC): between recovery and disparities
After a decline in French spending during Q2, consumer product sales saw a slight rebound in Q3, with turnover increasing by +0.5% to reach €44.2 billion. While modest, this growth is encouraging given the deflationary context.
Key contributors to this performance include the snacking category (+2.5%), driven by increased promotional demand in Confectionery and Breakfast products, particularly in September. However, the standout growth driver was Produits Frais Libre-Service (FLS), which achieved a +1.7% increase. This category notably benefited from the Paris Olympics, experiencing significant turnover peaks during the festivities.
For two weeks, the magic of the Olympics extended to the Drinks category, providing a temporary boost. However, it wasn’t enough to offset broader challenges. A stormy summer followed by a gloomy September—compared to the hot summer of 2023—significantly impacted this weather-sensitive category, which ended Q3 2024 with a -4.0% decline in turnover.
The effects of the Descrozailles law continue to weigh heavily on the market, with affected categories struggling. For example, Baby products saw a decline of -8.8% in Q3 turnover, an improvement from -11.0% in Q2 but still far below the stability achieved in Q1 (+0.1%). Similarly, the decline in Entretien (household maintenance) products (-4.4% in Q3) and DPH (Droguerie, Parfumerie, Hygiène) products (-2.4%) continues to drag down overall FMCG turnover.
Technical and Durable Goods (T&D): a sector in decline
The Technical and Durable Goods (T&D) sector experienced a clear decline in Q3 2024, with turnover falling by -6.1% year-over-year, from €18.3 billion in Q3 2023 to €17.2 billion. This reflects cautious spending by French consumers in this category.
Home equipment markets recorded a decline of -2.7% in Q3 2024, driven by reduced spending in IT (-3.3%), Telecoms (-1.7%), consumer electronics (-7%), and photography (-1%). As we approach the holiday season, the impact of Black Friday will be key to gauging the health of the non-food goods market.
Despite overall challenges, household appliances continued to attract consumers, with turnover reaching nearly €8 billion (+0.4%). Small Household Appliances performed particularly well, growing by +8.9%, fueled by demand for vacuum cleaners and oil-free fryers. However, Large Household Appliances saw a turnover decline of -3.3%.
The DIY market declined by -5% in Q3 2024, with all product categories affected. Nevertheless, two sectors bucked the trend: furnishing/decoration grew by +2.8%, and gardening increased by +4.9%, driven by the strong performance of high-pressure cleaners (+38.7%) and mowers (+20.9%) in large DIY stores.
The climate engineering sector suffered a significant decline of -18.3%, largely due to reduced sales of electric heating and air treatment devices.
“The holiday season traditionally benefits certain T&D categories, particularly IT, audio, and smartphones,” notes Vincent Cornu, Director of Retail Services France at NielsenIQ–GfK. “While Black Friday will offer an initial indicator, as highlighted in our State of T&D 2025 report, innovation will remain a key driver for this market. Brands focusing on accessibility, sustainability, and product convenience will stimulate demand in the coming months.”
The NielsenIQ Retail Spend Barometer provides a comprehensive view of distribution turnover in France, covering consumer products (food, drinks, fresh goods, hygiene products) and technical and durable goods (household appliances, audio-video, DIY, gardening, etc.). This cross-category, multi-channel perspective, based on real sales data from NielsenIQ and GfK, offers an unparalleled snapshot of consumer spending trends.
More information on the site NIQ Retail Spend Barometer (nielseniq.com)
About NIQ Retail Spend Barometer
The NIQ Retail Spend Barometer combines FMCG and Tech & Durables sales data, collected at checkout by NielsenIQ and GfK in France. It measures actual sales and allows you to study changes in trends over the last periods studied. The FMCG scope includes food, fresh produce, drugstore-hygiene-beauty (DPH) products and even pet food, and the Tech&Durables sector includes technical goods, household appliances, DIY and gardening. The data comes from distributor panels of NielsenIQ and GfK, which together measure the sales of more than 350,000 channel partners across the globe. For more information, visit: NIQ Retail Spend Barometer (nielseniq.com)
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 95+ countries representing 97% of the world’s 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.
About GfK
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 including operations in 95+ countries representing 97% of the world’s GDP. By joining forces, we fuel clients’ growth by providing a complete understanding of 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 delivers the Full ViewTM.
