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Romania's FMGC market expands 7pct in 2017 amidst rising prices
Romania's market for fast moving consumer goods (FMCG) expanded 7 percent in 2017, driven by rising prices instead of rising purchases, as was the case in 2016, according to a study by market research company GfK.
The study shows that in 2017 Romanian consumers turned to higher-priced products, a phenomenon called up-trading.
Home care products recorded the highest increase in 2017, of nearly 10 percent in value. Also rising above the market averages were dairy products (especially butter, melted cheese and cheese specialties), packed food and beverages. Fresh foods and personal care products grew at the same pace as the FMCG market.
"The share of promotions dropped in terms of value for oral care products, hot drinks, canned foods and dairy products. However, promotions have the highest shares in personal care and home care products (especially laundry detergents and universal products). In the case of beverages, the biggest market shares in value for promotions are recorded in refreshments, beer, coffee and tea. The consumption share of retailers' brands remained constant in 2017 compared to the previous year."
GfK points out that at the end of 2017 modern trade channels captured a market share of 59 percent, up 1.4 percentage points from 2016. Discount and proximity stores had the fastest growth.
"Hypermarkets remain the most important modern shopping channel. During last year they were visited more often by shoppers, but the carts remained at the level of the previous year. The discount stores reported rising sales because people paid on average more at every purchase and bought mainly form such stores. The supermarkets benefited from a higher average buying frequency and larger carts. They continue to be the most visited retailers. The proximity stores had the best dynamics. They succeeded in recruiting new buyers, attracting them more often to the stores, and persuading them to spend more money per purchase. The positive development was also influenced by the expansion of these formats. Overall, nearly 220 proximity stores opened in 2017," the study says.