TO December stable inflation at 15.1%: NielsenIQ’s analysis of household shopping carts in “The state of consumer goods in Italy” still shows a preference for private label products, considered a good compromise between price and quality, and growth in sales of paper towels, sunflower oil and sugar. Consumers look to convenience but don’t want to give up too much on quality, highlights the GS1 Italy Observatory. Thus, even for the standard-bearer foods of “Italianness”, with PDO and PGI labels, attention to price is growing. According to the NielsenIQ analysis which takes a monthly snapshot of the scenario of large-scale retail trade through the trend in consumption and the purchasing habits of Italian families, in the month of December 2022 total distribution turnover in Italy marks +10.9% compared to the same period last year, with a turnover of 13.9 billion euros.
Distributors of wellness and home products are growing
Large-scale distribution: activities dedicated to the Home&Person are growing
As regards the various distribution formats, last month’s data show an increase – compared to the same period in 2021 – in the turnover of Home&Personal specialists (+14.4%)followed by Discounts (+14.3%), Superstores (+13.4%), Free Services (+9.6%), Supermarkets (+9.3%), and finally Hyperstores>4500m2 (+7 .5%).
Finally, the consumption of private label products in December 2022 stood at 21.3%, a slight decrease compared to the previous month equal to 21.4% of the LCC in the Hyper, Super and Liberi Servizi perimeter (i.e. supermarkets of smaller square footage), settling instead at 29.9% of the total in Italy including the Discounts.
What Italians put in the shopping cart
The products dedicated to Pets (+18.4%) and the Packaged food (+13.8%) even in the month of December, the product areas remain with the more significant growth.
Fresh products maintain the positive trend in most of the distribution channels, with the best and worst trends recorded respectively in Discounts (+13.9%) and Supermarkets (7.7%). The most dynamic categories were Cheese (+19.1%) and Bread & Pastry & Pasta (+20.1%), while the decline in Pescheria (-0.1%) continues despite the holidays.
At the product level, NielsenIQ’s top-selling products for December ranking is led by Paper Handkerchiefs (+59.4%), Sunflower Seed Oil (+54.7%) and Sugar (+47%)which stand out as the categories that grow the most in terms of turnover.
Beware of certified products
The main products of theuniverse of Italianness on the label they are concentrated in the medium price range, which contributes to almost 47.0% of the turnover of the basket, against the 44.7% of the average for the total food, mineral water and spirits included. On the other hand, the incidence of the other two market segments is more contained (27.8% the high one and 25.2% the low one). Supporting the increase in basket turnover (+1.3% in value, but -0.2% in volume) is the growth of high-end products (+2.4% in value and +1.0% in volume), but the search for convenience begins to make itself feltin particular for low-end products (-1.6% in volume), those certified Dop, Doc and Docgwith a compression of consumption in all price ranges, and Igp/Igt consumption, which record a migration of consumption towards the low end.
Also pay attention to the price of the labels of quality products made in Italy
Finally, in the basket lifestyle the high price range prevails (35.9% against 29.2% of the total food, mineral water and alcohol included), while the lower price range is below average (17.1%), and in the 12 months surveyed there was an initial contraction in consumption (-0.6% in value and -1.7% in volume), driven by the decline in mid-range products (Figure 3). But the two main claims of this basket show different situations: the “bio” is decidedly more placed in the high end (54.8%) and suffered a drop in sales across all price ranges, while in the “veg” (vegan and/or vegetarian) reads a first migration from medium range (53.6%) both towards the low level and towards the high level..
Convenience without sacrificing too much quality
Another analysis on consumption was carried out byObservatory I guess from GS1 Italywhich has dedicated its in-depth dossier precisely to the theme of convenience, which every six months monitors the evolution of Italian spending by cross-referencing the information present on the product packaging digitized by the GS1 Italy Immagino service with the data processed by NielsenIQ on sales and consumption in large-scale distribution.CopyAMP code
«Our first key to understanding the role of convenience in the shopping cart was the segmentation by price range of the 130,000 food & beverage, home care and personal care products, which are part of our statistical basket, in order to map the positioning of the offer of supermarkets and hypermarkets» he explains Marco Cuppiniresearch and communication director of GS1 Italy.
The products were therefore divided into three price rangesthe result: 26.3% of sales of the total range of distributors is positioned in the low range, 43.1% is allocated to the medium range and the remaining 30.6% is in the premium range.
Products “without”, “rich in” and for intolerant are growing
The basket of productswithout” is positioned in the medium price range, moreover the cart of this type of product shows a form of “premiumization” of purchases: the growth of sales both in value (+1.5%) and in volume (+0.7% ) was in fact driven by theexpansion of sales of medium and high-end products.
Even if the share of products in the medium price range (45.3%) is higher than the average of food, excluding mineral water and alcohol, the basket of products “rich in” stands out for the high share of premium range products (30.2%). And it is precisely their expansion (+5% in value and +4.8% in volume) that has contributed to the increase in overall sales of the basket, both in value (+2.8%) and in volume (+2 ,1%).
Watch out for convenience yes, but super offers don’t attract… yet
Even the basket of products intended for those suffering from food intolerance it is characterized by the greater incidence of high-priced references: half of the total sales come from the medium range (50.4%) and 30.2% from the high range, but despite this, the total growth of the basket was driven by positive performances of low- and mid-range products, leading to a downgrading of the shopping cart for the intolerant.
The maxi-offers do not attract
Lastly, the Immagino Observatory built a “convenience shopping cart”, in which it placed all 6,471 products (5.0% of the total surveyed) that have at least one reference to this characteristic on the label (for example the words “savings”, ” offer” or “+30 ml free”), and monitored their performance. Compared to the year ending June 2021, they remain stable both the numbers and the turnover, equal to 2.8 billion euros of sell-out between super and hypermarkets. But the situation is dynamic: producers and distributors have significantly increased the offer (+10.4% the push component) against a consumer not yet sensitive to the lure of convenience (-11.7% the pull component).