In the past year*, Bulgarian households increased their spending on FMCG by 10%. Half the increase is attributed to higher average prices, while the other half to an increase in consumption by end users*.

Packaged grocery is the only category where increase in average prices is higher than the increase in spending. This means that there is a decrease in consumption as measured by volumes of purchases.

In the beverages category (beers and soft drinks), stable increases in both average prices and volumes have been registered. In contrast, chemical products (personal and home care) attract higher investments by end consumers, due to higher average prices, too. Even when purchasing more expensive products households have increased their volumes in these categories.

Hypermarkets (Kaufland, HIT, Carrefour, Roda, Tempo), discounters (Lidl, Penny Market) and minimarkets (self-service stores with 1 or 2 pay desks) attract a higher share of Bulgarian households’ spending on FMCG. This trend is paralleled by a share increase of private (own) labels. By September 2012, 11% of all spending on FMCG products goes through private labels. Traditional small food-chain markets are gradually losing their share, but remain an important channel in Bulgaria, attracting approx. 1/3 of end consumers’ spending.

*Data from the Consumer panel research by GfK Bulgaria, measuring Bulgarian household consumption.