New report flags rise of ‘prosumer’ as volume declines in FMCG across Europe

There has been rise of ‘prosumer’ – a new breed of more price-aware consumer, states a recent report highlighting a drop in volume of FMCG across six largest markets in Europe (France, Italy, Germany, Spain, UK and Netherlands).

Ahead of the release of its latest biannual ‘FMCG Demand Signals’ report next month, Circana (formerly IRI and The NPD Group) has flagged the rise of the ‘prosumer’ – a more price-aware, savvy and forward-looking consumer looking to adapt what they buy and how they consume to moderate the impact of intense price rises on their wallets. As such, Circana is heralding the end of the ‘destination shop’ as shoppers buy less to moderate the continued impact of price increases on their grocery shop.

With the energy crisis continuing to hit the household purse, plus the impact of the war in Ukraine affecting supply chains and the cost of ingredients and shortages, shoppers are still adapting how they buy and use everyday products.

The reports also points our the softening of demand in unit sales across the six largest markets in Europe (France, Italy, Germany, Spain, UK and Netherlands) as savvy shoppers adapt to offset the impact of soaring prices.

Volumes declined 1.1 per cent last year after falling 1.4 per cent in the final quarter of 2022. This is the fifth consecutive quarter of decline, with Circana forecasting that normalcy won’t return until the end of 2023.

Ananda Roy, Global SVP of Strategic Growth Insights at Circana, commented that this decline in unit sales is the clearest indication yet that demand is dragging across the largest European FMCG markets.

“We’re forecasting unit demand to decline sharply in food staples where price inflation continues to be the most intense. What is now becoming a ‘standard-of-living crisis is requiring shoppers to change how they try, buy and use everyday items. In fact, a staggering 86 per cent of European shoppers have reported changes to their ability to buy and willingness to pay being stretched.

“As a result, many are having to adopt a strategic approach to their shopping – making tough decisions and only based on needs. They are no longer sleepwalking into the store and getting their heads turned by impulse buys and clever marketing promotions.

“Sadly, an increasing number of shoppers are having to strip what they buy back to an almost quasi-Dickensian existence – looking for yellow-stickered items, even if they’re out of date, increasing the use of food banks, and reports of an increase in shoplifting amongst all major retailers.

“However, retailers have stepped in by increasing targeted promotions through loyalty cards, ‘price locks’ and price matching across retailers, and keeping between 500 to a 1,000 items priced as low as possible whilst also encouraging the use of scan-as-you-shop devices.”