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FMCG decline worst in Ireland

Most recent data from market analyst Nielsen has shown that FMGC sales have declined most severely in Ireland compared with other EU States

Oct 12 2009

Recent figures from Nielsen have shown that the rate of decline in consumption of FMCG in Ireland has been the most severe in Europe. Consumption in the first quarter of 2009 had improved by 1% compared with the previous quarter, but still left the Irish market lagging behind at -4%.

Within the €15 billion plus Irish grocery market, hard discounters have been the “star performers” this year, achieving market share of around 8% and growing at approx 15.8% (TNS Worldpanel, to 14 June), and growth rates of over 23% by end 2008 and early 2009.

Looking at value growth in different market segments in 2008 versus 2007, forecourts grew 4%, symbol groups increased by 3%, multiples (including the symbol group SuperValu) grew 2%, while independents experienced negative growth
(-2%). The overall grocery market grew by 4%.

Finally, Nielsen examined behaviour and attitudes among Irish consumers. In its research (May 2009) 53% now use a list while shopping, although over 60% of these usually or always deviate from it.

Ireland is in the top 10 countries of consumers most sensitive to promotions, with 16% of shoppers saying they would move stores for promotions. Promotions are also a key factor in changing brand, although the degree to which they cause this varies from category to category.

While consumers are prioritising value at present, 66% say they would pay more for better quality and 67% say they actively look for locally made products. Furthermore, 57% of consumers say they would opt for Fairtrade products or products in recyclable packaging, 39% would choose organics, and 36% look for ethically produced products.

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