World meat industry news

At the end of Q1 2023, the value of the NielsenIQ consumer optimism index increased to 104 points. This is 23 points higher than in Q1 2022 and four points higher than in Q4 2022, Kommersant reports. Readings above 100, analysts say, indicate that "consumers are generally bullish in terms of personal wealth, job prospects and willingness to spend."

The proportion of surveyed consumers who rate their job prospects as excellent or good has risen from 55% to 66%, according to NielsenIQ. The share of those who are confident in their personal financial situation increased from 56% to 61%, and the percentage of Russians who are ready to buy new things increased from 43% to 46%.

The growth in consumer confidence in recent quarters demonstrates how quickly consumers adapt to ongoing events, said Marina Volkova, director of analytics and consulting at NielsenIQ. By the beginning of 2023, the dynamics of sales of consumer goods (FMCG) in volume terms was fixed near zero, in March the indicator turned negative due to the high base of 2022, and in the future the market will continue to recover if there are no new shocks, representatives of NielsenIQ believe .

The main areas for saving Russians are clothing, entertainment and eating out. While the share of Russians who save on clothes decreased quarter-on-quarter from 71% to 67%, the number of Russians cutting spending on entertainment increased from 64% to 65%, and on eating out — from 59% to 61%.

Since 2023, retailers have recorded a slight recovery, primarily in the segment of consumer goods, said Igor Karavaev, Chairman of the Presidium of the Association of Retail Companies (AKORT; includes Magnit, X5 Group, and others). According to him, the growth of consumer sentiment indices and retail trade indicators are positive signals, but indirect ones, so it is too early to talk about positive dynamics in the market. People are still postponing more expensive purchases, essential products remain a priority, price remains an extremely sensitive parameter, he explained.

Also, the savings of Russians is confirmed by the growth in sales of products under their own trademarks (PL) due to lower prices, as well as the active use of promo, Karavaev said. According to AKORT, the share of private labels in the turnover of federal food retailers has exceeded 20% and is growing every year.

While saving remains the main trend right now, as the economy improves, consumers plan to spend more actively, according to a NielsenIQ survey. 26% of consumers plan to reduce spending on eating out, compared to 28% at the end of 2022. The share of those who save on buying takeaway food has decreased from 27% to 23%, and the percentage of those who are ready to save on vacation has decreased from 14% to 12%.