Milan - Circana, a leading company in consumer behavior consultancy, has unveiled its biennial FMCG Demand Signals study, analyzing purchasing trends across Europe. The report highlights a complex recovery, with a 0.3% increase in unit sales despite weak demand in major Northern European markets.

The FMCG sector recorded a 4.4% growth over the past year, reaching €673 billion. This growth is primarily driven by Spain and Italy, where domestic consumption and investments are accelerating recovery. In contrast, the UK, Germany, and France show slower signs of recovery, influenced by economic volatility.

Private labels are leading the growth, capturing a 39.2% market value share, thanks to retailer innovations focused on quality and sustainability. However, traditional brands can remain competitive by introducing targeted innovations and optimizing product assortments.

Supermarkets and hypermarkets continue to dominate the market, though hypermarkets are struggling due to changing consumer preferences. Convenience stores and discount retailers remain preferred for essential purchases.

Forecasts for 2025 suggest growth will face challenges such as high prices and economic volatility, with uneven demand potentially hindering sustainable development. The economic context remains unstable, raising concerns about the long-term sustainability of growth.