Kantar sees the fresh produce trend
A Kantar Worldpanel report says that, despite global FMCG growth remaining slow in 2017, retailers and manufacturers that adapt to meet macro-economic changes and shopper needs can still find ways to grow.
“Around the globe, consumers are becoming more health conscious,” says the report called ‘Winning Omnichannel: Finding Growth in Reinvented Retail’.
With people living longer and having more information at their fingertips, there has been heightened demand for FMCG products that promote healthy living or deliver added health benefits.
As a result, there has been a noticeable trend towards fresh produce. Global avocado sales, for example, climbed 11% in the past 12 months. Sales of fresh berries – including strawberries, blueberries and raspberries – increased by 8% over the same time period.
Fresh seafood is another burgeoning area — especially in Europe and the USA. Sales of fresh seafood grew by 5.9% in Germany, faster than anywhere else in the world. Spain (+5.4%) and France (+5.2%) also displayed strong growth in this category. The UK (4.7%) and the USA (2.8%) also saw positive growth.
The organic food trend is still a niche market globally. But the report says it has broadened its appeal over the past 12 months. Organic products in Germany, France, Spain and the UK all gained share against fresh food—with Spain growing the fastest at 26% growth since 2014.
Stéphane Roger, Kantar Worldpanel Global Shopper and Retail Director, says: “The global FMCG market is harder than ever, growing only a +1.9% in value last year while gross domestic product (GDP) experienced an almost +4% growth. Beyond the average, growth is fragmented because of booming e-commerce and discounters, and struggling hypermarkets and supermarkets.
“Shoppers are giving a clear message: they want convenience and value for money. At Kantar Worldpanel we predict that spending in supermarkets and hypermarkets will decline to 48.4% in 2020. Successful strategies need better understanding of the new channel dynamics at play and the differences between countries.”
Kantar's prediction for FMCG value share
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