There is no break in the market this year, with consumers looking to cut spending where they can, as month-on-month increases in staples continue unabated.
Unfortunately, inflation remains the most serious problem faced by Greeks in the last two years, despite the government’s efforts to limit the phenomenon with supportive measures, such as the market pass, energy subsidies for household incomes, but also interventions in the market, such as the household basket, imposing a ceiling on the profit margin on key product categories.
Market agents do not hide their fears that from September and given the continuous increase in the prices of food and raw materials in the international markets, there will be new price increases in basic products.
The price of sugar has already increased in the last two years by 64%, of olive oil by 51%, while in flour, cereals and baked goods the increases exceeded 30% from 2021 to today.
This situation has forced consumers not only to limit their purchases for months, but also to turn to cheaper products, whether they are on sale or private label.
At the same time, spontaneous purchases at the supermarket have been significantly reduced, while in their consumer behavior Greeks have now adopted the purchase of smaller packages, are cutting back on non-essential foods, while they have also cut back on their journeys to reduce fuel costs.
According to the latest Nielsen IQ data, which now includes actual data from the discount channel, the organized food retail market moved positively in value by 8.7% in the first half of 2023 compared to the corresponding period last year .
This trend is mainly driven by food, both fresh (+9.2%) and standardized (+9.4%), with bazaar products showing the most moderate growth, at +2.7%, while at the same time the major FMCG categories of household use, as well as personal care, show significant sales growth in value, at +10.6% and +7.8% respectively, due to increased prices.
However, looking at volume sales for the total up to June 18, 2023, there is a 2.5% decline, suggesting that market growth is purely inflationary, with consumption holding back.
Private label products
In fact, from the same data it follows that consumers, in their effort to limit their spending per visit to the supermarket, continue to show a growing preference for private label products.
These, although they have significantly increased their average selling price, continue to be the cheapest alternative in the majority of categories, having now reached a market share of 1/4 of the total.
This share, in fact, is particularly high in household care products, with more than a third of the products that enter the basket of Greek households being private label, showing a percentage increase compared to 2022.
At the same time, retailers and suppliers are stepping up their efforts to be as competitive as possible, offering shoppers more and more deals. The percentage of promotional intensity in the market has reached, for the first half of the year, 69.3% for branded products.
Latest News
Cocktail of Dust and Heat Brings Stifling Sunday Weather
Meteorologists expect the conditions to persist until at least Wednesday
Greek Hotels Vindicated by Commission’s Ruling on Booking.com
The Commission has ruled that Booking is a "gatekeeper" and must comply with the Digital Marketing Act, addressing complaints by the European Hotel Industry and Hellenic Chamber of Hotels
Which Islands Will Have Italians Flocking to Greece this Summer?
Well-known Italian travel magazine details reasons why Skopelos, Naxos and Astypalaia are the go-to summer destinations for Italians
Antentokounmpo 5th Highest Paid Athlete in World
The basketball player rakes in 111 million dollars per year, between his salary at the Bucks and endorsements from big brands like Amazon, Nike and Pepsi
Greek FM Gerapetritis: Need to Immediately End Gaza Hostilities
Gerapetritis added that a humanitarian crisis was transpiring in Gaza, with the concerns now being spillover in the wider Middle East.
ETC Report: Greece 3rd Most Popular Destination for Europeans
Italy and Spain are tied as the top destinations, each attracting 8% of travelers
Greece Battles EC to Protect Rice Industry and Public Health
Together with several other EU countries, Greece successfully blocked the European Commission's proposal to increase allowable levels of a banned pesticide commonly found in rice imported from southeast Asia
Eurostat: 3.2% Annual Inflation in Greece in April
The data shows that Greece ranks seventh in overall inflation within the eurozone and second in food inflation
Intrum’s 2024 Report Unveils Greek Businesses Embrace Digitalization for Growth
Looking ahead, over 40% of businesses prioritize development for 2024, with 65% recognizing the potential of digital business models as sustainable investments
IOBE: Mild Drop in April Business Confidence Index (BCI) in Greece
The positive balance of expectations for employment witnessed a marginal decline, while the index for production forecasts also recorded a mild drop