【InternetRetailingEmarsys】2024消费者包装商品行业CPG发展与品牌调研报告_52页_6mb

Summary of RetailX 2024: Consumer Packaged Goods Market in Europe

Core Content

The Consumer Packaged Goods (CPG) market in Europe is a significant and diverse sector, encompassing food, beverages, and household essentials. This report provides a comprehensive overview of the market, highlighting key trends, challenges, and opportunities for CPG brands and retailers.

Key Findings

• The global CPG market is valued at $3.18tn (€2.92tn), with the European market expected to be worth $774bn (€771bn) in 2024, marginally above 2023 levels.
• On average, European consumers spend €299 on food, €190.10 on beverages, and €170.10 on household essentials each month.
• Online CPG sales account for 13% of European revenues, with food being the dominant segment, contributing 55% of ecommerce revenues between 2019 and 2023.
• Household essentials make up the smallest part of the online CPG market, accounting for around 15% of online sales in Europe between 2019 and 2023.
• The UK leads in online grocery purchasing, with 58% of consumers buying groceries online in the past year, compared to 16% in France.
• Convenience is the primary driver of online CPG purchases, with 31% of consumers citing it as the main reason for buying groceries online.
• The pandemic significantly boosted CPG sales in 2020, especially for food, beverages, and wellness products, but this growth has plateaued since.
• The cost-of-living crisis and inflation have pressured consumer spending, with food and beverage sales seeing almost zero growth in 2023 and likely negative growth in 2024.
• Inflation reached 12.8% in 2023 for food prices in Europe, leading to downtrading and a shift to private label and value-focused products.
• The Ukraine-Russia war disrupted raw material availability, energy prices, and supply chains, leading to higher production and logistics costs.
• Private label brands and own-label alternatives are becoming increasingly competitive, as CPG brands often manufacture these products themselves.
• Sustainability and ethics are gaining importance, with consumers showing a preference for eco-friendly packaging, ethical production, and sustainable sourcing.
• Younger consumers, particularly GenZ and Gen Alpha, are more inclined towards health and wellbeing products and sustainable goods, opening up new market segments for CPG companies.

Main Trends

• E-commerce growth: While online sales are growing, bricks-and-mortar stores still dominate the market, accounting for over 80% of CPG sales in 2023.
• Digital transformation: CPG brands have increasingly adopted digital-first strategies, including personalisation, data-driven marketing, and omnicannel approaches.
• Shift to value: Consumers are more price-sensitive, leading to downsizing purchases and a preference for private label and value-for-money products.
• Sustainability focus: CPG brands are under pressure to adopt eco-friendly practices and ethical production, which are becoming key differentiators.
• Changing product preferences: There is a growing demand for fresh, local produce, plant-based alternatives, minimally processed foods, and eco-friendly cleaning products.

Key Challenges

• High inflation has driven down real consumer spending, especially in 2023.
• Supply chain disruptions have increased costs for CPG companies, prompting reshoring and supplier diversification.
• Brand loyalty is low, and consumers are more likely to choose products based on value and convenience rather than brand name.
• Competition is fierce, with CPG brands often competing with their own retail partners and private label alternatives.

Opportunities

• Sustainability and ethics: Brands that align with these values are gaining market share.
• Digital marketing: Data analytics and retail media are becoming essential tools for reaching consumers.
• Omnicannel strategies: Offering seamless experiences across online and offline channels is critical for success.
• Subscription services: These are gaining traction, especially for convenience and discovery-oriented products.
• Regional preferences: Local tastes and traditions continue to influence product demand, with Western Europe focusing more on health and sustainability, and Eastern Europe being more price-sensitive.

The Road Ahead

• Continued growth in online CPG sales, especially in grocery, is expected.
• Private label and own-brand competition will intensify.
• Sustainability will remain a key differentiator and growth driver.
• Technological innovation such as smart packaging and personalised recommendations will play a major role in future CPG strategies.
• Adapting to changing demographics, such as single occupant households, will be essential for long-term success.

Conclusion

The European CPG market is highly competitive, price-sensitive, and evolving rapidly. While offline sales remain dominant, online growth is accelerating, driven by convenience and digital transformation. Sustainability and health consciousness are shaping consumer choices, and CPG brands must adapt quickly to stay relevant in this dynamic market.