NIQ Geomarketing releases new study on European retail in 2024 and 2025
Bruchsal, Germany, August 26, 2025 – The share of private consumption allocated to retail – rather than savings, services, or leisure – continues to decline across the European Union. In 2024, this trend persisted for the third consecutive year, with EU citizens spending just 32.6 percent of their disposable income in retail. Croatia recorded the highest share, with nearly every second euro spent in retail. These insights come from a new, free study published today by NIQ Geomarketing, offering a comprehensive overview of retail trends across Europe.
Although purchasing power and retail turnover are rising across Europe, the proportion of consumer spending directed toward retail has been steadily declining for the past three years. In 2024, retail accounted for just 32.6 percent of total private consumption, underscoring this ongoing trend. However, regional differences remain significant. Consumers in Eastern European countries, in particular, allocate a considerably larger share of their purchasing power to retail.
Among the 27 EU member states, Croatia leads with a retail share of 48.0 percent, marking a 0.5 percentage point increase compared to the previous year. Bulgaria (46.3 percent) and Hungary (45.3 percent) follow, although both recorded slight year-on-year declines. This is attributed to rising purchasing power, which enabled consumers to allocate more funds to savings or non-retail expenditures. At the other end of the spectrum, Germany reported the lowest retail share in the EU. Only one out of four euros was used for retail purchases, with just 25.1 percent of private consumption spent in retail.
“Retail remains a central component of consumption in the EU, even as its share continues to decline,” explains study lead Philipp Willroth. “Consumer confidence has remained fragile since the pandemic, with many Europeans concerned about their country’s economic outlook. Inflation, rising living costs, and climate change rank among the top concerns and are driving more cautious spending behavior.”
In the free European retail study, NIQ’s Geomarketing department examined the key indicators of the European retail sector for the year 2024. The study offers trend analyses for numerous European countries, offering a valuable point of reference for retailers, investors, and project developers.
Additional key results at a glance
Purchasing power: In 2024, purchasing power across Europe continued to grow, albeit at a noticeably slower pace than in the two previous years. The average per capita purchasing power in the EU reached 21,008 euros, representing a nominal increase of 3.0 percent compared to revised 2023 figures. In total, residents of the 27 member states had approximately 9.5 trillion euros at their disposal for expenses such as food, retail purchases, housing, services, energy costs, private pensions, insurance, vacations, and mobility.
Retail turnover: After a robust 5.5 percent increase in 2023, the growth rate of retail turnover in the EU moderated to just 3.0 percent in 2024, reflecting a broader normalization of consumer behavior and market dynamics following the post-pandemic recovery. The strongest gains were recorded in Eastern Europe, led by Romania (+14.9 percent), followed by Bulgaria (+9.9 percent), Croatia (+9.3 percent), and Slovakia (+9.2 percent). In contrast, Estonia saw a 1.3 percent decline, largely due to political uncertainty and rising consumer skepticism.
Inflation: After sharp price increases in recent years, inflation across the EU showed further signs of stabilization in 2024, averaging 2.6 percent. The highest rate was recorded in Romania (5.8 percent), followed by Belgium (4.3 percent) and Hungary (4.0 percent). At the other end of the spectrum, Lithuania reported the lowest inflation, at just 0.9 percent. The 2025 forecast for the EU is 2.3 percent.
How generations shop: Across Europe, generational differences in consumer behavior can be observed. Generation X (ages 44–59) holds the highest purchasing power and is relatively open to trying new products – more so than Baby Boomers (60+), but less than Millennials (28–43). Millennials favor at-home experiences such as cooking and entertainment, reinforced by the pandemic. Generation Z (under 28) is highly convenience-driven and frequently purchases food-to-go. Boomers remain the most cautious, opting for private labels, focusing on essentials, and making purchase decisions based on promotions to save money.
About the study
For the year 2024, NIQ Geomarketing analyzed key retail and market indicators across Europe, including NIQ purchasing power, retail turnover, the retail share of consumers’ total expenditures, and price trends for both 2024 and 2025. A dedicated chapter also explores regional shopping behavior across generations, highlighting how demographic shifts are reshaping consumer dynamics on a regional level. All calculations related to turnover and purchasing power were conducted in euros. The editorial deadline for the study was July 2025.
The PDF version of the study is available free of charge in German at www.nielseniq.com/studie-einzelhandel-europa or in English at www.nielseniq.com/european-retail-study.
Images
Print-quality images can be found here.
Additional information
on NIQ Geomarketing’s regional market data can be found here.
Press contact: Thomas Muranyi, T +49 911 395 4928, thomas.muranyi@nielseniq.com
About NIQ
NielsenIQ (NIQ) is a 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 two industry leaders with unparalleled global reach. Our global reach spans over 90 countries covering approximately 85% of the world’s population and more than $7.2 trillion in global consumer spend. 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™. For more information, please visit www.niq.com.
