Packaged FMCG back to growth

After years of a heavy minus sign, in the first 7 months of this year sales of LCC (packaged FMCG goods) grew by 2%, in a retail distribution network of more than 68 thousand stores ranging from hypermarkets to traditional stores.

The total turnover of the sector, which in 2014 had reached 65 billion euro, in the period under review has already exceeded 38 billion or about +750 million compared to the same period of 2014.
This is documented by a study carried out by IRI for Marca 2016: 12th edition of the international fair of private label products, organized by BolognaFiere in cooperation with ADM (13 and 14 January 2016). According to IRI, this development was favored by good weather last summer, which stimulated consumption, but is also linked to a more structural recovery in sales across Italy.

The positive trends relate in particular to fruit and vegetables (+7.2%), beverages (+4.2%), pet care (+3.2%) and grocery/food (+1.8%), with the only exception being homecare products (-1.0%).
Parallel to this the distribution channels are changing.
The number of outlets continues to decline, which in January stood at 68,828 (-1,056), mainly at the expense of small traditional retailers and hypermarkets, while superstores and drugstores show clear growth.