Nielsen Webinar: Year-End Results and Market Trends in 2025

Overview of Key Figures, Demand Drivers, and Effective Strategies

February 2025

The Nielsen webinar held in February 2025 provided a comprehensive overview of the year-end results and market trends, focusing on key figures, demand drivers, and effective business strategies. The insights covered various aspects of the market, including the performance of different product categories, consumer behavior, and strategic recommendations for businesses.

New Year Holidays: Season Highlights and Revenue Factors

The New Year season of 2024 was marked by significant trends in alcoholic beverages. The sales dynamics of various alcohol categories showed mixed results:

- Sparkling Wine: Experienced a modest growth of 2.9%.

- Brandy: Declined by 7%.

- Whiskey: Saw a notable increase of 23.6%.

- Rum: Increased by 15.3%.

- Vermouth: Faced a significant decline of 19.7%.

- Beer: Grew by 46.9%, indicating a strong consumer preference.

Key growing brands included "Abrau-Dyurso," "Derbentskoe," "Lev Golitsyn," "Sovetskoe," and "Martini," each showing growth due to factors like price adjustments and increased distribution.

Sales Volume Before New Year

The holiday season saw an increase in sales across almost all seasonal categories:

- Chocolate Assortments: 15.4%

- Herring: 15.1%

- Eggs: 12.3%

- Canned Vegetables: 9.7%

- Raw Meat: 5.5%

These figures highlight the consumer preferences and spending patterns during the festive period.

Domestic Tourism Boosts Retail in Cities

Domestic tourism during the New Year holidays significantly impacted retail sales, particularly in impulse purchase categories. The number of trips within Russia increased by 14% compared to the previous year, with popular destinations including Moscow, Krasnodar Krai, and Saint Petersburg.

Consumer Confidence Remains High

Consumer confidence remains at a record high, with approximately 65% of consumers rating their financial situation as "excellent" or "good." This optimism is driving real demand, particularly among younger consumers aged 18-24 and 25-34.

Rational Optimism: Key Indicators of Consumer Behavior

Despite the overall optimism, consumers are adopting rational spending strategies:

- 62% of consumers are employing cost-saving strategies.

- Primary savings are seen in clothing, entertainment, and dining out.

- Only 17% of consumers would continue purchasing cheaper brands even if their financial situation improved.

FMCG Market Dynamics

The FMCG market experienced significant growth in 2024, with real demand contributing to about one-third of the nominal market results. Key growth categories included:

- Cold Beverages: 23.9%

- Confectionery: 17.7%

- Pet Care: 20.3%

- Snacks: 29.9%

Expansion of Retail Channels

The growth in fast-expanding channels is primarily driven by an increase in the number of stores. Modern trade and online channels are expanding into regional markets, although this growth is gradually slowing as available potential is exhausted.

Refrigerated Beverages: Market Shifts

The beverage market saw a redistribution of assortment, increased seasonal demand, and the introduction of new flavors and products. Key trends included:

- Cold Beverages: 9.6% growth

- Energy Drinks: 16.4% growth

- Fruit Juices: 9.3% growth

Fruits and Vegetables: Continued Growth

The fruits and vegetables sector continued to grow, with a significant presence in the online FMCG market.

Convenience and Ready-to-Eat Meals

The convenience food sector, including ready-to-eat meals, saw substantial growth, particularly in smaller formats and online services. Key drivers included salads, baked goods with fillings, and soups.

Assortment Strategy: Expanding vs. Contracting

The FMCG market saw the introduction of new brands and the expansion of existing players into new segments. However, some brands launched in 2023 have already disappeared from the shelves, indicating a dynamic and competitive market landscape.

Private Labels Gain Momentum

Private labels are becoming increasingly significant, accounting for nearly 15% of retail sales. This trend is particularly strong in categories like canned vegetables, fish, and chocolate spreads.

Top Brands and Market Restructuring

Several brands made significant strides in their respective categories:

- Alcohol: "Bochkarev" and "Stella Artois" showed substantial growth.

- Snacks: "Botanica" and "Don Kruaton" made notable advances.

- Confectionery: "BabyFox" and "Lyubyatovo" saw increased market presence.

Tactics and Strategy for 2025

For 2025, businesses should focus on pricing, assortment, and in-store strategies. Key recommendations include:

- Pricing: Maintain competitive pricing while managing margins.

- Assortment: Continuously update and optimize product offerings.

- In-Store Experience: Enhance customer experience through effective merchandising and promotions.

Promotions: A Critical Area for FMCG Retail

Promotions remain a crucial driver of sales, with nearly half of FMCG sales occurring during promotional periods. Effective promotional strategies should consider price elasticity and consumer response to discounts.

Increasing Competition in Stores

The retail landscape is becoming increasingly competitive, with chains expanding into smaller formats and focusing on discount and hard-discount stores. Key players like X5 Group, Magnit, and Perekrestok are actively opening new stores and enhancing their market presence.

Conclusion

The Nielsen webinar provided valuable insights into the current market trends and consumer behaviors, offering strategic recommendations for businesses to navigate the dynamic FMCG landscape in 2025. By focusing on consumer preferences, competitive pricing, and effective in-store strategies, businesses can position themselves for success in the coming year.