According to a report by Circana, value sales of Fast-Moving Consumer Goods (FMCG) saw a growth of 5.8% adding €33bn to the sector. However, this inflation-driven growth has masked the overall decline in volume as consumers cut back on consumption. Demand in unit sales across the six largest markets in Europe - France, Italy, Germany, Spain, UK, and the Netherlands - declined by 1.1% annually, deepening further by 1.4% in Q4 2022, marking the fifth consecutive quarter of decline and is not forecast to return to normalcy until the end of 2023.

Forensically examining the pandemic's influence, inflation and the cost of living crisis on over 230 FMCG categories, 2000+ product segments, and over ten million SKUs, the report highlights the rise of the ‘prosumer’ - a more price-aware, adaptable consumer fixing what they buy and how they consume to reduce the impact of intense price rises on their wallets. According to Circana, shoppers are buying less to moderate the continued effect of price increases in their grocery shopping.

With the energy crisis and the entrenched war in Ukraine affecting supply chains and ingredient costs, shoppers have had to change how they buy and use everyday products, which has resulted in a decline in FMCG sales.