Shopping around as daily routine
Be where the shopper is
2023 was the year of shopping around, with a three percent increase in trips compared to 2022. Finding the lowest prices, the latest promotions, and the best in PL, marked the comeback of discount: In number of trips, discount increased from more than 8.5 billion trips in 2021 to nearly 9.7 billion in 2023. A few brands were able to ride the discount* wave: From Coca-Cola and Kinder to Dr. Oetker, Mlekovita and especially Müller – all of these Top 10 brands gained in discount, both in consumer choice and penetration, the latter scoring a remarkable 21.5% increase in CRP. Similarly, Haribo, with a strong performance in Eastern Europe – CRP +51% and penetration +10.6% –, losing ground in Western Europe (CRP -9.4% / penetration -6.1%).
Top 10 brands in Hard Discount in Europe
Source: CPS GfK YouGov, Kantar Worldpanel, Brand Footprint 2024 European Hard Discount Ranking | *Czech, Slovakia, Croatia, Serbia and Bulgaria not included
In general, the discount channel saw very few negative changes in brand penetration with only four of the Top 10 brands decreasing. Compared to the overall Top 10, where only three brands were able to generate CRP growth, in discount, five of the Top 10 brands were able to increase this metric. For example, looking at the overall ranking of Coca-Cola across all channels, the brand had to face a small decrease in CRP, whereas it scored an increase in discount, boosting the brand. In discount and compared to 2022, Kinder makes it to the basket more often, recording a stronger CRP than in the overall ranking (difference 3.5%).
Online: Convenient for stockpiling
In online, PL has been less prominent than in bricks & mortar, but has seen a steep growth. The value share of PL online reached 39% in 2023 – up 6% from the previous year. Whereas buying FMCG online was the ultimate trend during COVID, growth of this channel stalled afterwards. While online still generated value growth of 6% in 2023, compared to 2022, it had to experience another decrease of -1% in number of trips. The online FMCG business in the Nordics, for example, is regressing with a noticeable decrease in trips in Sweden and – as in Denmark – a decrease in value. But nine out of 20 countries in Europe saw an increase in trips from 2022, mostly in the single-digit range, and double-digit in Croatia, Romania and Serbia – and there is hope for a modest increase across the board this year, as slightly more shoppers plan to increase online FMCG shopping rather than decrease.
Top 10 brands online
Source: CPS GfK YouGov, Kantar Worldpanel, Brand Footprint 2024 European Online Ranking
Nonetheless, the online channel and the respective brand performance show a very diverse landscape across Europe: Most Top 10 brands experience a negative development in CRP and penetration, for example in Italy, where almost all Top 10 brands are decreasing online, including Kinder and Barilla. In some countries such as Germany, where online is still expanding, brands like Coca-Cola and Kinder are able to expand their CRP in this upcoming channel, with CRP growth of respectively 15% and 13%.
In any case, convenience is the name of the game. Shoppers are ordering baby and frozen food, personal care and beauty products online for stockpiling, thus pushing brands such as Hipp (rank 36 online, CRP +16%), Bofrost, Zewa and Tempo in Germany. In Poland, 4 out of the 10 leading brands online are brands for personal care & beauty. As mentioned earlier, we see indications of a slowdown in retail ‘hopping’ to find the best bargain. As budget pressures ease up, we can expect a renewed need for convenience and comfort. For brands, the imperative persists: Be where the shopper is, be it online or in bricks and mortar.
Coca-Cola: choice across channels
“Act global, think local.” Understand, create and deliver value.
"COCA-COLA collaborates in a close network to continuously optimize its product portfolio. A wide range of flavors and formats enables consumers to buy a COCA-COLA product for nearly every occasion, everywhere. Especially in times of hybrid purchasing behavior, this everyday relevance strengthens brand loyalty. Another success factor would be the localization of a global strategy. Understanding local market structures and identifying purchasing behavior patterns based on consumer panel data are essential here. We are delighted that our account teams in 16 countries have been able to support COCA-COLA for many years with their local FMCG expertise."
Constance Scheffler | Global Account Director, YouGov
"COCA-COLA’s genuine interest in understanding local Swedish market dynamics and local shopper needs in the Swedish market is clearly paying off – brand penetration even further increased to 61,8% by March ‘24. COCA-COLA has a very keen eye for evolving shopper needs and trustingly partners with us on a true insights journey - every project strategically contributes to extend the knowledge from previous projects to continue to guide data driven decision making and drive actions."
Monica Ostergren | Commercial Team Lead, YouGov Nordics
Coca-Cola in Sweden
Source: CPS GfK YouGov, Kantar Worldpanel, Brand Footprint 2024 Swedish FMCG Total, Hard Discount and Online Ranking