When inflation affects consumption
Inflation is the catalyst for significant change for French consumers in 2023. In fact, they have been forced to rethink their purchasing priorities. Faced with a general rise in prices, particularly marked in the food sector, households had to make difficult choices. A NielsenIQ survey shows that most French people have cut their spending in areas considered less essential, such as clothing and leisure. More than 6 in 10 have had to limit their outings to restaurants.
This trade-off extends to basic needs as well, 22% of respondents have reduced expenditure on food and essential groceries. To get around rising prices, nearly half of consumers have turned to such strategies Compare prices, shop on promotions or even reduce meat and fish consumption.
Private label brands in the lead
The most significant reaction to these inflationary pressures is a massive shift Towards Private Label Brands (MDD), Considered a historic downgrade. Private labels, often offering a more attractive quality-price ratio, see their performance increase, recording. Unprecedented growth rate since 2017. This trend has not spared wealthy consumers.
Brands with a strong value imageThe likes of Leclerc and Lidl have particularly benefited from this development, capturing increasing market share to the detriment of more traditional formats. At the same time, sales and discount stores, leading the action, continue to attract a growing number of households. In contrast, sectors such as organics, which have suffered from their high cost position, have declined. While inflation is expected to slow in 2024, it remains to be seen whether these new habits will last or whether the French will gradually regain their appetite for brands.
