Consumer packaged goods: weakest European sales growth in 8 years
European sales of consumer packaged goods (CPG), which largely consists of beauty and toiletries products, grew only by 0.1% in the second quarter of the year. The 0.8% rise in revenue achieved was made possible only by a 0.7% increase in retail prices.
Turkey was the country that recorded the highest growth in value terms (+8.9%), ahead of Norway (+3.5%), Sweden (+3.2%), Spain (+2.1%) and Italy (+1.2%). Figures were instead negative in some other countries, notably Greece (-7.2%) and Finland (-4.6%). The UK, one of the great CPG markets, suffered its worst performance of the last 2 years (-1.6%).
France and Germany did not shine either, as noted by Nielsen’s Director of Distribution Studies in Europe, Jean-Jacques Vandenheede. "Two factors could explain this, historically one of the worst European performances," he explained. "We might mention the negative effect of Easter falling in the second quarter last year and not this year, but chiefly, and more significantly, it was down to the impact of a very weak growth in France and Germany, and the notable slump in the UK, driven by ferocious price competition among retailers. Southern Europe was often to blame for Europe's bad performance, but this time it made quite a good showing, while the situation in northern Europe is currently more problematic."
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