- Polish consumers are more optimistic about their financial situation than the average Europeans
- We spent nearly PLN 99bln on FMCG and Tech & Durables products in the third quarter
- FMCG sales value growth in the third quarter of 2024 was +4.3% vs. the previous year, the Tech & Durables industry (electronics, DIY, home appliances) noticed a sales value growth of 1.6% in the third quarter vs. the previous year
Warsaw, 21/11/2024: The third quarter is often a time for reviewing household budgets, further burdened by holiday-related expenses and assessing the state of those finances after returning from vacation. This year in the third quarter – based on the results of the Consumer Confidence Index – the mood of Polish consumers remained moderately optimistic. Concern about rising grocery prices fell from the number 1 position to second place in the ranking of Polish consumer worries, being overtaken by the rising cost of living associated with bills – probably caused by rising electricity prices. The improvement in consumer sentiment was certainly influenced by inflation – which, as reported by the Central Statistical Office, was between 3 and 4.5% in the third quarter, more than twice as low as a year ago.
In the months from July to September, Poles spent a total of 4.3% more on FMCG products – food, chemicals and tobacco products. This represents a slight decrease in the growth rate compared to the previous quarters of this year. The growth of the overall FMCG market was influenced by both an increase in average product prices and, what we perceive as a positive sign of the improving financial condition of Polish consumers, an increase in volume consumption. Unfortunately, compared to the first half of the year, the volume dynamics were slower, but still positive.
Polish consumer spent close to PLN 99 billion in Poland on FMCG products and Tech & Durables – IT, consumer electronics, household appliances and DIY. Out of this amount, food, chemical and tobacco products accounted for more than PLN 75 billion, and Tech & Durables for nearly PLN 24 billion.
Among the categories that noticed the highest growth in sales value in the third quarter were fresh food products (with an increase of more than 10% vs. Q3 2023) and personal care products, which have been growing in terms of sales value by double digits over the past 12 months. Among FMCG categories, paper categories (which include toilet paper, kitchen towels, etc.) are noticed decline of value sales – mainly due to falling prices.
In the Tech & Durables sector, the most dynamic growth was observed, as in previous quarters, by household application products (with a 6.9% year-on-year increase in value sales in Q3). Among the categories driving this growth were so-called Soda Makers, fryers and dryers. The positive sales trend is also continued by DIY products which have been recording year-on-year sales growth since Q2 2024. Negative sales dynamics in the third quarter, on the other hand, were recorded by electronic and IT products (-2.3% year-on-year). It’s also worth noting that by far the better sales dynamics are in the case of Tech & Durables products, the online channel, which for electronic and household products increased in value by more than 16% in Q3.
“The third quarter of 2024 was characterized by a slight increase in sales volume for FMCG products, continuing the positive trend we have seen since the beginning of this year. Consumers, despite their very careful planning of purchases and spending, are becoming more optimistic about their financial situation. This translates into an increase in spending – both in FMCG by +4.3% and in Tech&Durables by +1.6%, in the third quarter of 2024 compared to a year earlier.”, comments, Konrad Wacławik, Retail Services Director, NIQ Poland.
One of the strategies for managing the household budget is shifting consumption to the home – Poles declare that, faced with the need to save money, they will give up eating out, use food delivery or entertaining outside the home. We can see these declarations in the summary of sales results for Q3 – both food products record volume growth, as well as technology products for meal preparation or home care rituals are characterized by positive sales results. It is also invariably important for Poles to take care of their health, and we are willing to spend more in these aspects as well – on food categories of pro-health or functional products, and on technology – such as smartwatches that help us take care of our fitness and monitor our health. We enter the fourth quarter optimistic but sensibly and consciously planning our spending.
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.
