NielsenIQ Turkey: Fast-Moving Consumer Goods Market Grows by 75.4%
Foreks - NielsenIQ, a global information services company, has shared insights that will shape the recent growth of the Fast-Moving Consumer Goods (FMCG) market alongside retail and shopper trends. NIQ Turkey General Manager and EEMEA E-Commerce Deputy President, Didem Şekerel Erdoğan, noted that the FMCG market in Turkey, excluding tobacco and alcohol, has recorded a volume growth of 10.7% and a revenue growth of 75.4% in the first nine months of 2024. She emphasized that the global FMCG market has been showing positive volume growth for the past three quarters. The categories that highlighted the growth in both volume and revenue include ice cream, home cleaning products, and non-alcoholic beverages. According to her, the top three categories that increased their revenue share significantly with high growth performance in the first nine months of 2024 are ice cream, chocolate-coated products, and home cleaners.
The research emphasizes that e-commerce has been developing both in Turkey and globally, reporting that currently the share of e-commerce within the FMCG sector has reached 40% in South Korea, 35% in China, and around 20% in the U.S., while in Turkey this share stands at 7%. It is anticipated that double-digit growth will be observed in the near future. NIQ Turkey Retail Services Director Serhat Sükan pointed out that while e-commerce has a 7% share in FMCG in Turkey, it holds a 23% share in consumer technologies and durable goods, indicating there is still room for growth in FMCG.
According to NielsenIQ's research, e-commerce recorded revenue growth parallel to the offline market in the first nine months of 2024. The top five categories with the highest revenue growth in the e-commerce FMCG market during this period are hair gel, cakes, ketchup, snacks, and mayonnaise. E-commerce has achieved significant share levels across many categories due to the growth momentum it has seen in recent years.
Price discounts have emerged as the most preferred type of promotion. NielsenIQ highlights the critical importance of understanding consumers and taking action based on changing consumer behaviors. It is suggested that brands and retailers consider this topic while forming their 2025 strategies. Five main areas that need close monitoring and action in this period are: consumers' current status, factors increasing consumption, financial polarization, redefined promotions, and multichannel experience.
Under the consumers' current status, redefined consumer values emphasize a home-focused lifestyle, zero-waste kitchen trend, stress management, preventive health, savings, planned budgeting, and a search for convenience. The importance of promotions is noted under consumption factors. According to the research, shoppers are focusing on essential needs and purchasing discounted products to manage the effects of price increases. As a result of this value-seeking behavior, the number of supermarkets visited by shoppers has increased compared to the previous year, with price discounts being the most preferred type of promotion.
In the promotion section, it is stressed that price should not remain a one-dimensional factor; instead, the benefits offered by the product should be communicated through different channels, making "Smart Promotion" a focal point. Despite this inclination towards discount/value seeking, the research indicates that 40% of Turkish consumers express, "I value quality and am willing to pay more for quality products."
"24% of the Turkish Population is Comprised of Generation Z Individuals." NielsenIQ's research, indicating that Generation Z is the largest generation in history, highlights that this cohort holds significant importance in terms of both numbers and total impact on consumption. According to the research, Generation Z individuals constitute 24% of the Turkish population. This generation stands out with its distinct values, which are defined by four fundamental principles: individuality, moral values, flexibility, and a good life.
The research describes Generation Z as the first true natives of the digital world, revealing that young individuals prefer spending time on social media, enjoy following social media influencers, and participating in live events in the digital realm. Additionally, the study shows that Generation Z individuals in Turkey spend an average of 5 hours online daily. While they use social media, they approach sharing their lives with caution.
2025 will be the year of Smart Promotions… Didem Şekerel Erdoğan shares actionable recommendations for producers and retailers in their strategic roadmap: "While the FMCG market continues to grow robustly, we are going through a period where caution is necessary. Understanding redefined consumer values and Generation Z is critically important. It is also vital to comprehend the dynamics of consumption, emphasizing the importance of innovations and the place of cross-media utilization at this point. Furthermore, although we speak of a cautious shopper, it would be beneficial for our brands and retailers to consider premium product opportunities while acknowledging financial polarization. Moreover, promotions should not be limited to price dimensions; this period calls for more focus on smart promotions that convey benefit messages through multiple channels. Finally, I want to highlight again the multichannel experience that we have long underscored: Significant opportunities can be captured by integrating artificial intelligence and hyper-personalization with shelf management."