Mass consumption will begin a cycle of stabilization in 2024, according to Kantar

It will be stable volume, moderate growth of the distribution brand and a recovery of trends that began to take shape before the pandemic The most important factors in the development of mass consumption in 2024As mentioned The quintal. The research company concludes that, under these circumstances, it has started in this market A period of stabilityThis contrasts with the ups and downs witnessed in recent years.

Kantar first points out that volume has barely declined, estimating a decline of -0.2%, a more common percentage than seen in recent years, because this is you.A market that is generally characterized by its great stability. An example of atypical developments seen in previous years is the 4.5% increase recorded in 2022 due to inflation.

The company points out that in any case, the market size in 2023 is u3.6% less than achieved in 2019 And link this fact to him “Convergence of long-term fundamental trends with other changes in typical habits in times of crisis.”

There are three basic trends that are being combined, according to Kantar: moving sales volumes from the niche channel to the dynamic channel; Waste reduction and advancing the consumption of prepared food options and delivery. The first of these three factors is shifting purchases from the specialized channel and small enterprises to the dynamic channel. It is responsible for 14.5% of the total volume lost in the market. This trend – which, according to Kantar – is expected to be coming “From far back”– It is maintained in 2024 and subsequent years.

The waste reduction is commendable This is the reason for 24.6% of the total decrease in volume, while the percentage of the trend to buy ready-made dishes and resort to delivery service reached 11.3%. Together, the research firm points out, the three factors together account for nearly half the size of the reduction in market size.
The rest must be attributed to Adopting temporary habits related to the crisis situation, Such as practicing less impulse buying or sticking to a pre-made list.

Distribution brand

The stability that is supposed to reach the market this year tIt will also impact the brand of distribution. The combination of these brands reached a value share of 47.3% in 2023, a record high, but although their growth will not be interrupted, Kantar's forecasts are that they will do so in a more moderate way.

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The company indicates in the statement in which it presents these data that “The outlook will continue to be a challenge for manufacturers and retailers. In the new cycle, we will see how the focus on maintaining margins threatened by continuous price increases is gradually abandoned to focus on gaining volume share again. For this reason, Kantar expects major operators to invest more in “Basic tools, such as advertising, promotion and innovation.
Regarding the latter, Al-Kantar points out that it should Gain momentum This year as a tool for achieving excellence and growth. Cesar Valencoso. Kantar Worldpanel Consumer Insights Manager says: “The importance of innovation is that brands that innovate the most grow six times faster than those that don't.”