Gfk: Romanian FMCG market reported a 3.4% growth in value for 2016 | Progresiv
2016 was a good year for the consumer goods industry, with the FMCG market reporting a 3.4% increase in value compared to the previous year, being the second consecutive year in which Romanians had an increased appetite for more expensive products and for larger expenses, according to GfK data published in the "Fast Moving Trends in FMCG" report. 
"Behind this growth are both a 3% rise in purchased volumes and the uptrading phenomenon (consumer orientation towards superior products in terms of price). Unlike last year, uptrading was found in both modern and traditional trade, this phenomenon being responsible with an increase of one percentage point of the premium brands at national level, to the detriment of other price categories”, according to GfK representatives.
In terms of purchasing frequency, Romanians acquire less commonly used goods, but spend more on a purchase act. Reducing the frequency with which people go shopping was noted exclusively in the fresh food categories, while for home care products the purchasing frequency increased.
Two thirds of spending goes to food products
If we refer to the main categories of products on which Romanians spend the most, food remains in the top, accounting for 66% of the total budget allocated to current use goods.
The highest growth rate was reported in household care products, beverages and personal care products. However, considering the size of the category segments, fresh foods and beverages were the ones that contributed the most to the growth of the FMCG market. Among the categories that have grown in 2016 are: seafood and fish, frozen foods, exotic fruits (avocados, pomegranates etc.), cider, champagne etc.
The hypermarket, the most important retail channel
Regarding the evolution of modern trade in 2016, international retailers cover 57% of the total FMCG market in Romania, up by 2% as compared to 2015. The highest contribution to the increase of the modern trade are supermarket and discount formats, winning each a half percentage point.
"The growth of these formats comes from attracting more customers in stores and the increase of purchasing frequency. Although they had a steady growth in market share in 2016, hypermarkets remain the most important modern channel, with more than a quarter of total FMCG sales for home consumption", explain GfK representatives.
Compared to other years, in 2016 the retailers' concentration has diminished its growth pace. The market share of the top 10 retailers increased only by one percentage point (compared to 3 points in 2015).
Among the most active retailers in terms of market share growth are Lidl and Profi. Traditional trade has had a negative evolution during 2016, with a decrease of 2%, determined by a reduction in the frequency with which Romanians buy from traditional formats.
For 2017, GfK representatives anticipate a slower growth rate than that recorded in 2015-2016, given that 2017 will be characterized by inflation as a result of tax cuts and cuts in VAT in 2015 and 2016.
