CPG unit sales grew across the EU6 though value growth cooled, and innovations struggled to command a premium

KEY TAKEOUTS:

• Euro-Area inflation remained high in July ’26 (2.9%) with large increases vs June ’26 in markets like Germany (+0.5pp) and Spain (+0.4pp). Forecasts indicate steeper rises in the coming months across Europe, with over 3% inflation in Q4 2026 expected in UK, Netherlands, Spain. Weak business and consumer confidence resulting from this price volatility will prolong cautious spending and a value-driven mindset, dampening hopes of a boost in units and volume growth as they were just picking up this year.

• CPG value and units both grew in L52W with value growth (+2.8%) outpacing units growth (+1.0%). Value growth slowed -0.2pp YTD as prices eased, but this facilitated a stronger units growth +0.4pp YTD, driven by Food & Drinks categories. Food & Drinks volume growth YTD remains uneven across Europe, with Spain and France driving growth while Germany continues to lag. Food & Drinks units growth improved YTD across all 6 EU markets. Non-Food CPG units declined -0.5% in L52W with a sustained decline -0.6% YTD as well. Spain is the only market where Non-Food CPG units grew 1.9% L52W and 1.7% YTD, led by Private Labels.

• CPG value grew in L52W in 8 of 12 category groups but declined in key categories like Alcohol and Household Care. CPG value growth lost momentum YTD across most categories, but Alcohol value decline stalled (0.0% value growth YTD) and Frozen Foods value growth improved YTD (+1.2pp vs L52W). Chilled & Fresh and [Non-Alcoholic] Drinks remain the largest contributors to value growth YTD.

• Food/Drinks volume grew only in 3 out of 7 category groups - Chilled & Fresh Foods, Frozen Foods and Drinks. Strong volume growth in Yogurt, Nuts, Herbs & Spices, Plant-Based Drinks and Chilled/Fresh Fruits indicates continued consumer preferences for health and convenience benefits. Beverage categories that focus on convenience, functionality and moderation were also some of the fastest-growing segments – e.g. RTD Spirits, Dairy Drinks, No/Low Alcohol and Sports & Energy Drinks.

• Private Labels have a 42% share of market value in Europe and continue to gain momentum. Growth is led by everyday Food & Drink categories within Chilled & Fresh and Frozen Foods. Non-Food CPG categories struggled across both Brands and Private Labels, despite steep levels of promotions: Non-Food CPG Brands had almost a third (32%) of units on promotion in L52W.

• CPG innovations in L52W contributed €651m of incremental value despite a lower share of new products on shelf than a year ago, led by lower price premiums over regular products this year

OUTLOOK FOR REST OF 2026:

CPG units and volume growth is expected to remain fragile throughout 2026 as inflation concerns and financial pressures continue to weigh on spending. Private Labels will continue to resonate especially in essential Food & Drink categories where shoppers are seeking affordable solutions without compromising on quality, health or convenience. To defend share and stimulate growth, CPG Brands must focus on innovation, differentiation and smarter promotional investment that delivers clear value to increasingly budget-conscious consumers.