GfK Purchasing Trends in Europe: Money is no longer so loose
93 percent of consumers in Europe have already adjusted their shopping behavior as household budgets become tighter. Current GfK data provides an overview of the most common savings measures and national differences.
Consumers are feeling the effects of inflation and the rising cost of living not only in Germany, but throughout Europe. A GfK comparison of 15 countries in Europe shows that 93 percent of consumers have already changed their shopping habits to save money. In Germany, too, this applies to the majority of consumers, at 89 percent. More than half of those surveyed say that this is not a voluntary decision, but that price trends are forcing them to limit spending.
Germans reduce shower times
The most common cost-cutting measure in Germany is to reach for cheaper store brands (50 percent). Current GfK Consumer Panel data shows that private labels increased their market share in Germany by 2.6 percentage points last year. In addition, 46 percent of Germans eat out less frequently. Visiting restaurants less often actually tops the list in many parts of Europe: In Italy, 58 percent and in Austria 61 percent of consumers now cook more at home.
But people are also reacting in their own households: 47 percent of Germans say they are taking shorter or fewer showers or baths. In addition, 28 percent of consumers save money by using their technical household appliances less. More than a third of consumers (36 percent) are switching to energy-saving programs such as washing at lower temperatures. In Europe, this trend is particularly strong in Italy and Denmark. In countries like Sweden, where electricity costs have risen less, only one-fifth switch to energy-saving programs.
The categories in which Germans are most concerned about rising prices and would like to adjust their behavior include luxury categories such as alcoholic beverages (47 percent), cosmetics (46 percent), confectionery (45 percent) and fish and meat products (41 percent). However, around a third in each case also want to reduce purchases of frozen foods. Consumers' compensation strategies differ depending on the product category. For example, many consumers want to do without alcoholic beverages altogether, while they want to buy cosmetic products or confectionery less frequently or at lower prices.
Discounters the only ones on the upswing
The subdued consumer mood runs through almost all sales channels. Only discount stores saw an increase of 15 percent in the proportion of European consumers who intend to shop there more frequently in the next six months. In Germany, the proportion is even higher at 21 percent. Rational factors such as the availability of low-priced private labels or attractive promotions are more important to consumers when choosing a store than emotional factors such as friendly staff or fast service.
How retailers and manufacturers are successfully getting through the crisis
So the current crises are not only affecting consumer sentiment, but are also leading to complex trade-offs and savings strategies among consumers across Europe. Dealers and manufacturers face the challenge of keeping up with these trends. "They need to understand the new consumer needs in order to serve them with the right offers in the right places in the coming months and years," says Anna Rademacher, consumer trends expert at GfK. "Innovative products and devices that meet rational shopping goals while also providing positive emotional or social benefits stand a particularly good chance. For example, retailers and manufacturers can help consumers avoid food waste with new portion sizes or dynamic price discounts shortly before the best-before date expires. This not only saves their wallets, but also the environment."
However, the nature and intensity of behavioral changes vary widely from country to country and by category. Therefore, brands need to adapt their strategies based on a clear understanding of local circumstances and identify and target drivers of potential category growth.
For more information on various consumer savings measures in Europe and Germany, download the free GfK whitepaper "FMCG in 2023 - Between rational shopping and emotional messaging".
To the study
Two surveys on the subject of behavior change were conducted in 15 European countries in April and November 2022. The study investigated how changing social conditions are affecting consumer behavior in the FMCG sector.