- After a general decline in the second quarter, the market picked up in the quarter from July to September
- Self-care and convenience are decisive factors in FMCG and T&D spending in the Netherlands
Amstelveen, November 20, 2024 – Tobacco legislation, warmer weather in the summer months and convenience were the main influencing factors for spending in Fast Moving Consumer Goods (FMCG) and Tech and Durables (T&D) markets in the Netherlands from July to September 2024. In this edition of the NIQ Retail Spend barometer, experts from GfK and NIQ reflect on the developments in the FMCG and T&D sectors and predict which trends and events will influence sales in the last quarter of 2024 and the upcoming year. The report combines data from NIQ and GfK to provide the most comprehensive insights possible into market potential and developments in the Netherlands.
After a general decline in the second quarter, the market picked up in the quarter from July to September; with a 3.7 percent growth in FMCG turnover (excluding tobacco) and a 0.4 percent increase for T&D. Frozen and fresh foods, as well as beverages were much more in demand than in the same period of the previous year, reflecting the warm temperatures over the summer. The warmer weather also led to increased sales of T&D products like air conditioning units and electric fans, which consumers used to combat the heat. And while inflation led to higher prices, the price increases were not as high as in the previous year.
Hot summer drives Dutch consumers outside
Consumers in the Netherlands have been spending more time outside in the months between July and September. As a result, the DIY & Home Improvement sector in particular, which includes gardening tools and supplies, grew by 2.0 percent compared to the previous year, while in the rainy second quarter of the year 2024, it experienced a decline of 5 percent. Tools for outdoor use, like pressure washers and hedge trimmers also showed an increase in turnover – 52 percent and 22 percent respectively. This shows the influence that the weather can have on market developments. In addition, the heat also drove sales of air conditioning systems (64 percent increase) and electric fans (63 percent increase), compared to the turnover figures of Q3 2023.
FMCG data reflects the temperature as well. Fresh food (7.1 percent increase), frozen foods (7.0 percent increase), and beverages (3.8 percent increase) all experienced higher turnover, but this effect is most notable for ice cream with a year-on-year growth of 12.7 percent. These figures emphasize that, as with the DIY & Home Improvement sector, the climate can have a significant impact on food and drinking habits and therefore sales.
Tobacco legislation has hit retail with full force in the third quarter
The Dutch legislation prohibiting tobacco products from being sold in supermarkets and drugstores across the country has hit the market with full force since coming into effect on July 1st, 2024. While sales of tobacco products have already been declining since the start of the year, they have been hitting zero percent in the third quarter 2024. It is worth noting, however, that this number is limited to tobacco sales in supermarkets and drugstores and does not reflect the overall sales of tobacco products.
Convenience and personal care drive spending in both FMCG and T&D
Convenience has been a selling point for a while now, especially in T&D products, and continues to be a decisive factor. Dutch consumers are more likely to spend money on products that combine different features, such as vacuums with integrated wet cleaning features, or electric styling equipment for drying, straightening and curling hair. Overall, spending has marginally increased by 0.4 percent compared to Q3 2023 after a general decline in the first half of the year. This upward trend will likely continue in the last quarter of the year with promotions around Black Friday, Christmas and the end of the year.
The outstanding category in the FMCG sector is personal care with an increase of 8.0 percent. Body care product turnover increased by 8.8 percent in a year-on-year comparison, hair care by 8.4 percent. Personal care has been continuously growing since the start of 2023, showing that self-care is not just a trend but is evolving into a necessity that Dutch consumers elect to spend money on.
“The rising sales we are seeing in T&D and FMCG for personal care and convenience products show that consumers are more likely to spend money on products that make their lives easier and make them feel good about themselves. These trends are here to stay”, says Jasper Bins, Retail Vertical Director Benelux, NIQ and GfK. “We are expecting big promotional events like Black Friday and Christmas to boost sales in both FMCG and T&D. Retailers and manufacturers that position themselves along trending topics like convenience or self-care and who are able to reach consumers with attractive promotions have an opportunity to gain further market share and drive sales.”
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.
