Trends in household’s FMCG consumption during first quarter of 2010
Following the dynamics of the household FMCG consumption which after the middle of 2009 have shown negative tendency compared the same period of 2008 in the Q1 of 2010 another decrease of 0.6% has been registered. During the same period the National Statistics registered slight increase of the consumer prices opposite to the levels at the end of 2009.
In the beginning of 2010 the household purchases in value as well as in volume decreased driven by the negative macroeconomic development (-4% decrease of the GDP for the same period after a decrease of 5.1% on average for 2009) and higher unemployment rate.
Household’s consumption of FMCG decreased in terms of volume and in value by 0.6%. The key factors for the dynamics were the buying frequency and the weight of purchase which have dropped respectively by 0.4% and 1.3%.
After prolonged uptrend within Home care category, for the first quarter of the year value drop has been observed. Despite this negative trend, there is a volume growth (+3.8%) within this category outlines the extensive consumption of cheaper products and mainly PLs. On the other hand a consumer switching towards cheaper branded products is observed. The same is also valid for the purchases in the personal care category.
A growth in volume and value within the alcohol category (mainly beer) by 9.4% is observed. The dynamic within this basket has been driven by higher average price as well as by the higher intensity rate.
Contrary to the positive trend within Beers there is a decrease within soft drinks category – mainly into the category of Carbonated Soft Drinks and Juices.
Channel Trade Trends:
Despite the fact that small grocery shops still have the bigger share of the market, during the first quarter Bulgarian households spent less money within this outlet type for a decrease of -5.4%.
The Cash and Carry format has been losing share due to the stronger targeting on the HoReCa markets with a value share of 2.1%. The observed decline has been driven by the conducted outlet policy to enlarge the stock units.
Discounters were the outlet type which has increased with bigger rate. Households expenditures within this format have raised with 64.4% compared to first quarter of year 2010. Its market share reaches 11.8% in value. Along with the fact that this format is very attractive for consumer by offering lower price, the other positive driver for volume/value increase is an increasing retailer concentration.
The German hard discounter Plus continued to open new stores in smaller Bulgarian cities, as from the beginning of this year it has opened 5 new outlets. The chain has already sold its operation to Lidl.
The biggest European retailer Carrefour opened its first hypermarkets in Sofia and Plovdiv and continues to expand other big cities in the country.
