NielsenIQ Turkey: Fast-Moving Consumer Goods Market Grows by 75.4%
Foreks - Global information services company NielsenIQ has shared insights that will shape the recent growth of the Fast-Moving Consumer Goods (FMCG) market, alongside retail and shopper trends. According to Didem Şekerel Erdoğan, General Manager of NIQ (NielsenIQ+GfK) Turkey and Assistant Regional Vice President of E-Commerce for EEMEA, the FMCG market in Turkey, excluding tobacco and alcohol, has recorded a growth of 10.7% in volume and 75.4% in revenue in the first nine months of 2024. She emphasizes that the global FMCG market has shown positive volume growth for the past three quarters, presenting a favorable picture. Notable category groups driving growth in both volume and revenue are ice cream, home cleaning products, and non-alcoholic beverages. Erdoğan also shares that the top three categories with the highest revenue share increase in the first nine months of 2024 are ice cream, chocolate-covered items, and home cleaners.
The research highlights the development of e-commerce in Turkey and globally, indicating that the e-commerce share of FMCG now stands at 40% in South Korea, 35% in China, and around 20% in the United States. In Turkey, this share is observed to be 7%. It is anticipated that double-digit growth will be seen in the near term. Serhat Sükan, Director of Retail Services at NIQ Turkey, notes that while e-commerce holds a 7% share in FMCG, it captures a 23% share in the consumer technology and durable goods market, suggesting there is still ground to cover in FMCG.
According to NielsenIQ's research, e-commerce recorded revenue growth in parallel with the offline market in the first nine months of 2024. The top five categories within the FMCG e-commerce market that registered the highest revenue growth in this period are hair gel, cake, ketchup, snacks, and mayonnaise. E-commerce has reached significant share levels in many categories, driven by its growth momentum in recent years.
Price Discounts as the Most Preferred Promotion Type… NielsenIQ stresses the importance of understanding consumers during this period and taking action based on changing consumer behaviors. Brands and retailers are advised to consider this aspect while developing their 2025 strategies. Five main topics that need close monitoring and action are highlighted: the current state of consumers, factors driving consumption, financial polarization, redefined promotion, and multichannel experience.
In the current state of consumers, new consumer values are emerging, emphasizing a home-focused lifestyle, zero-waste kitchen trends, stress management, preventive health, the pursuit of savings and planned budgeting, and convenience. The importance of promotion is discussed under consumption factors, noting that shoppers are concentrating on essential needs and purchasing discounted items to manage the effects of price increases. The rising number of stores visited by shoppers compared to the previous year is underlined, along with price discounts being favored as the most preferred type of promotion.
In the promotion section, it is stressed that price should not remain a one-dimensional aspect; the benefits offered by the product must be communicated through multiple channels, focusing on "Smart Promotion." Despite this trend toward discounts and value-seeking, the research indicates that 40% of Turkish consumers express, "I care about quality and I am willing to pay more for quality products."
“24% of Turkey's Population is Made Up of Generation Z Individuals.” NielsenIQ's research indicates that Generation Z is the largest generation in history, holding significant importance in terms of both numbers and their overall impact on consumption. The research reveals that Generation Z makes up 24% of Turkey's population. This generation is distinguished by its different value system, which comprises four key principles: individuality, moral values, flexibility, and well-being.
The research describes Generation Z as the first true natives of the digital world, highlighting that these young individuals prefer spending time on social media, enjoy following social media influencers, and participate in live events in the digital realm. According to NielsenIQ's research, Generation Z individuals in Turkey spend an average of 5 hours per day online. They use social media but are cautious about sharing their lives.
2025 Will Be the Year of Smart Promotions… Didem Şekerel Erdoğan shares action recommendations for producers and retailers in their strategic roadmap: “While the FMCG market continues its strong growth, we are entering a cautious period. Understanding the redefined consumer values and Generation Z is critically important here. It is also essential to understand the dynamics of consumption well; at this point, I want to emphasize the importance of innovations and the role of cross-media usage once again. Furthermore, even though we discuss cautious shoppers, it would be beneficial for our brands and retailers to also consider premium product opportunities, taking financial polarization into account. Additionally, promotions should not only focus on price; this period should see an increase in smart promotions that communicate benefit messages through multiple channels. Finally, I want to reiterate the multichannel experience that we have long emphasized: utilizing artificial intelligence and hyper-personalization combined with shelf management can create significant opportunities.”