2022
0
Italy Supermarkets Market Report 2022
2023-01-14T03:06:25+00:00
OX1124605
2195
159455
[{"name":"Supermarkets and Grocery","url":"https:\/\/store.mintel.com\/industries\/retail\/supermarkets-grocery"}]
Report
en_GB
"The cost of living crisis has changed the way Italians shop for groceries in the past year, with the big winners being the discounters, our research showing strong growth in…

Italy Supermarkets Market Report 2022

£ 2,195 (Excl.Tax)

Description

“The cost of living crisis has changed the way Italians shop for groceries in the past year, with the big winners being the discounters, our research showing strong growth in the proportion shopping with them and also significant growth in the proportion using them for main, rather than top-up/secondary shops. But mainstream supermarkets are not giving up their customers easily, investing in expanding their own label ranges (our research shows switching from brands to own label is a common behaviour in the past year) and pushing their loyalty schemes as another way of saving money. Sustainability, at risk of falling down the consumer agenda with such a focus on price, has a role to play still, with reducing food waste another way for people to save money. Grocery shoppers would like to see retailers go further in this area by dropping best-before dates on certain food and drink items and for them to generally be more proactive in helping them find ways to save money. Looking ahead, the challenge for discounters will be retaining the customers won during the crisis but this is not something they are going to have to face for a while, certainly not in 2023, as cost of living pressures are unlikely to ease significantly during the next year.”

– Michael Oliver, Senior Retail Analyst, December 2022

This Report will look at the following areas:

 

  • The impact of the cost-of-living crisis on the grocery retailing sector
  • The performance of the major grocery retailers in 2021
  • The main channels used to purchase food and drink and how this is evolving
  • How grocery shopping behaviours have changed as a result of COVID-19 and the cost of living crisis
  • The role of online and the impact of online-only specialists
  • The impact of the cost of living crisis on consumer shopping behaviours and attitudes towards sustainability.

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Market context
    • Areas covered in this Report
  2. Executive Summary

    • The five-year outlook for grocery retailing
      • Figure 1: Italy: Outlook for grocery retailing, 2022-27
    • The market
    • Energy and post-COVID recovery drives spending growth
      • Figure 2: Italy: consumer spending on core in-home food and drink categories (including VAT), 2017-22
    • Food retailers’ sales set to show marginal growth in 2022, all attributable to inflation
      • Figure 3: Italy: Food retailers, sales (excluding VAT), 2017-23
    • Grocers’ share of spend increases
      • Figure 4: Italy: Estimated distribution of spending on food and beverages by channel, 2021
    • Concerns over household finances impacts shopping habits
      • Figure 5: Italy: issues affecting Italian consumers in the past two months, 2022
    • The consumer
    • Women more likely to do all the shopping, but men more likely to do some of it
      • Figure 6: Italy: Who shops for groceries, 2019-22
    • Rise of the discounters
      • Figure 7: Italy: grocery retailers shopped at (net), 2020-22
    • Shoppers have a broad portfolio of places where they buy groceries
      • Figure 8: Italy: main versus other grocery shopping by retailer, 2022
    • 80% use a loyalty scheme
      • Figure 9: Italy: usage of grocery retailer loyalty/membership schemes, by retailer, 2022
    • Cost of living pressures manifest themselves in many behavioural changes
    • Improving loyalty scheme appeal can help to retain customers
      • Figure 10: Italy: agreement with statements about grocery shopping, 2022
    • The retailers
    • Selex challenges Conad for market leadership…
    • Discounters: Lidl closes the gap but Eurospin still leads, Aldi far behind
      • Figure 11: Italy: TOP 10 GROCERS’ SHARES OF ALL FOOD RETAILERS’ SALES, 2021
    • Online
  3. Issues and insights

    • How should mainstream supermarkets react to the ongoing cost of living crisis?
    • Push their loyalty schemes
    • Promote own label
    • Give them tips on saving money
    • Show consumers ways to be sustainable and save money at the same time
    • Provide more bulk-buying opportunities
    • Move closer to consumers
    • What can discounters do to hold on to market share gains?
    • Keep opening new stores and churning estates
    • Segment ranges to include more premium lines
    • Utilise loyalty schemes to build long-term relationships with customers
  4. Market size and performance

      • Figure 12: Italy: consumer spending on core in-home food and drink categories (including VAT), 2017-22
  5. Retail sector size and forecast

      • Figure 13: Italy: food retailers’ sales (excluding VAT), 2017-23
  6. Channels to market

      • Figure 14: Italy: estimated percentage distribution of consumer spending on food and drink by channel, 2017-21
  7. Market drivers

    • The economy
      • Figure 15: Italy: key economic indicators, 2021-24
    • Inflation
      • Figure 16: Italy: annual average consumer prices* of food and drink, annual % change, 2017-21
      • Figure 17: ITALY: monthly average consumer prices* of food and drink, annual % change, 2021-22
    • Consumer confidence bounces back after reaching record lows
      • Figure 18: ITALY: TRENDS IN LEVELS OF CONSUMER CONFIDENCE*, 2021-22
    • The impact of the cost of living crisis
      • Figure 19: Italy: financial situation of Italian consumers, 2022
      • Figure 20: Italy: issues affecting Italian consumers in the past two months, 2022
    • Retailer focus must remain on price
      • Figure 21: Italy: important factors when buying food and drink, 2022
    • Interest rate rises will further exacerbate cost of living pressures
  8. Who shops for groceries

      • Figure 22: Italy: who shops for groceries, 2019-22
  9. Where they shop

    • Rise of the discounters
      • Figure 23: Italy: grocery retailers shopped at (net), 2020-22
    • Usage of discounters is growing for main and secondary grocery shops
      • Figure 24: Italy: grocery shoppers who shop at selected discounters*, 2020-22
    • Shoppers have a broad portfolio of places where they buy groceries
      • Figure 25: Italy: main versus other grocery shopping by retailer, 2021-22
    • Retailers shopped at for main grocery shop
      • Figure 26: Italy: retailer shopped at for main grocery shop, 2021-22
    • Other grocery retailers shopped at
      • Figure 27: Italy: other grocery retailers shopped at, 2021-22
    • Retailers’ exposure to the cost of living crisis
      • Figure 28: Italy: shoppers at leading grocery chains, by net monthly household income, 2022
      • Figure 29: Italy: shoppers at leading grocery chains, by financial situation, 2022
  10. Usage of grocery retailer loyalty schemes

    • Four in five grocery shoppers belong to loyalty/membership schemes
      • Figure 30: Italy: usage of grocery retailer loyalty/membership schemes, 2022
    • Lidl over-indexes on loyalty card members relative to its market share
      • Figure 31: Italy: usage of grocery retailer loyalty/membership schemes, by retailer, 2022
  11. Attitudes towards grocery shopping

    • Cost of living pressures manifest themselves in many behavioural changes
    • Reducing food waste: a relatively easy win
    • Trading down is driving own label growth and rise of discounters
    • Improving loyalty scheme appeal can help to retain customers
    • Loyalty schemes are changing shopper behaviour during cost of living crisis
    • Loyalty schemes are acting as catalysts to change retailers during the cost of living crisis
    • Retailers need to be more proactive with helping customers save money
    • Almost a quarter of Italians would consider taking out a short-term loan to pay for groceries
      • Figure 32: Italy: agreement with statements about grocery shopping, 2022
    • Lidl and Eurospin customers most likely to be changing behaviour due to cost of living crisis
    • Carrefour customers keenest on short-term loans
      • Figure 33: Italy: agreement with statements about grocery shopping, by grocery retailers shopped at (net), 2022
    • Lidl and Conad loyalty scheme members most interested in rewards for recycling
    • Lidl customers most likely to say loyalty deals have become more important to them
      • Figure 34: Italy: agreement with statements about grocery shopping and loyalty/membership schemes, by usage of grocery retailer loyalty/membership schemes by retailer, 2022
  12. The retailers

    • Selex challenges Conad for market leadership…
      • Figure 35: Italy: Conad grocery brands profile, 2021
    • …as Coop loses ground
    • Esselunga continues to gain share but loses ground on market leaders
    • Discounters: Lidl closes the gap but Eurospin still leads, Aldi far behind
    • Own label becomes a more important battleground as cost of living crisis bites
    • Convenience stores carve out a niche
    • Other grocery retailers
      • Figure 36: Italy: lEADING GROCERS, SALES (EXCL VAT), 2017-21
      • Figure 37: Italy: lEADING GROCERS, OUTLETS, 2017-21
  13. Market shares

      • Figure 38: Italy: leading grocers’ shares of all food retailers’ sales, 2017-21
  14. Online

    • Online grocery retailing in Italy
    • Leading online players
    • The leading grocers
    • Specialist online grocery players
    • Rapid grocery delivery
  15. Appendix – Research methodology, data sources and abbreviations

    • Abbreviations
    • Consumer research methodology
    • Data sources

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