According to the findings of a NielsenIQ survey, 8 out of 10 CEOs predict growth for food retail businesses in the Greek market.
Regarding the overall trajectory of the fast-moving consumer goods sector, forecasts are also positive but more cautious compared to last year, evidently due to the decline in inflationary pressures, which are anticipated.
One of the interesting findings of the research concerns the expectation for sales volumes: Last year, there was widespread concern that price increases would lead to a decrease in consumption, which did not happen, as according to NielsenIQ measurements for 2023, demand remained stable.
This year, market participants, evidently spurred by last year’s outcome, largely predict stability, with 1 in 5 expecting growth exceeding 2%.
Furthermore, their concerns primarily revolve around declining purchasing power and increased government market control, which affects the country’s attractiveness for investment.
Although worries about inflation and production costs have lessened compared to last year, they still remain significant.
Conversely, suppliers see growth potential in introducing new products and fostering innovation, supported by data showing that new products are driving sales growth, particularly in non-food categories with high research and development investment. This perspective indicates a positive trend for market development.
However, concurrently with the introduction of new products onto the shelves, there needs to be a streamlining of the SKU (Stock Keeping Unit) assortment across various product categories. Analysis from NielsenIQ’s Advanced Analytics division reveals that only 18% of SKUs contribute to 80% of FMCG (Fast-Moving Consumer Goods) sales in supermarkets.
