FMCG Market in the Region: Customers Becoming More Selective and Changing Habits

Reflecting on the year 2024 that is behind us, the Adriatic region finds itself at the crossroads of economic recovery and changing consumer expectations. In the FMCG and durable goods (T&D) sectors, stable market growth was recorded last year. However, beneath the surface, consumer habits and behaviors continue to change, as shown by the latest NielsenIQ Adriatic State of the Nation report.

In Serbia, Croatia, and Slovenia, customers are becoming increasingly selective, prioritizing value and reassessing their purchasing habits. For manufacturers and retailers, it is no longer crucial only what people buy, but how and why they do it.

Growth of the FMCG Market in the Region

—

photo NIQ

—

In the Adriatic region, all three countries show significant variations in the price increases of FMCG products in 2024, from Croatia at 5.2 percent and Serbia at 3.9 percent to Slovenia with price growth below 1 percent. What sets Slovenia apart is the presence of three major discount chains, which provide more alternative options compared to large brands, thereby keeping price growth lower compared to Croatia or Serbia.

The FMCG sector in Serbia recorded consumption growth in 2024 compared to the previous year, with a value increase of 6.7 percent and a volume increase of 2.8 percent. Significant growth in the categories of pet care, personal care, and frozen food reflects a shift in consumer preferences towards convenience, health, personal care, and pet well-being. Promotions also played an important role, as consumers in Serbia increasingly seek discounts and plan their purchases to maximize value.

During 2024, the FMCG market in Croatia recorded a value growth of 7.8 percent and a volume growth of 2.6 percent compared to the previous year. Although the categories of home and personal care led the growth, an interesting change emerged: sales without promotions contributed more to the value growth of the FMCG market than promotional sales, indicating consumers’ willingness to pay full price for products.

The FMCG market in Slovenia also recorded growth during 2024, with a 2.1 percent increase in value and a 1.6 percent increase in volume, but with a more modest growth rate compared to the rest of the Adriatic region. Although Slovenian consumers are more cautious, demand remains positive, representing an opportunity for brands that adapt to changing customer needs and the growing importance of promotional sales. Personal care and snacks were the fastest-growing categories in 2024.

—

photo NIQ

—

Promotions as a Key Driver of Growth

The share of promotional sales in Serbia in 2024 was 38 percent, in Croatia 29 percent, and in Slovenia 27 percent. In the Adriatic region, the share of promotional sales recorded growth in 2024 compared to the previous year. Slovenia recorded the highest growth in promotional sales at 1.2 percent, indicating that discounted items increasingly contribute to market growth compared to products at regular prices, while in Croatia, the growth of the FMCG market was primarily driven by regular sales. This indicates a shift in retail dynamics in the Adriatic market, where promotional and pricing strategies will be key to driving sales in all three countries.

—

photo NIQ

—

Markets for Durable Goods and Electronics Also on the Rise

Serbia led the market for durable goods and electronics in the Adriatic region in 2024, observing growth in value and market sales compared to 2023. The most prominent category is large household appliances, with an impressive growth of 16.5 percent, within which all product groups recorded double-digit growth. Although demand remains strong, the top five brands (holding 44 percent of the market) are growing slower than other brands. This shift indicates a growing willingness among consumers to consider alternative brands in the market.

The T&D market in Croatia recorded a value growth of 8.4 percent in 2024 compared to the previous year, driven by growth across all quarters. The most successful category was small household appliances, whose sales results were particularly influenced by promotions during the ‘Black Friday’ and Christmas periods. Major sporting events in mid-2024 further boosted sales in Q2 and Q3. While the top five brands (with a 63 percent market share) continue to grow, the largest growth was recorded by brands ranked 6th to 10th, indicating an increasing diversity of consumer preferences.

The Slovenian T&D market achieved moderate value growth of 1.5 percent in 2024, but the fourth quarter recorded a decline of 0.9 percent. The negative trend was primarily driven by reduced smartphone sales, while household appliances and televisions continued to show positive results, with small household appliances experiencing double-digit growth. The biggest challenge was prices – in the fourth quarter, there was a decline of 6.3 percent compared to the same period last year, indicating increasing price competition. It is important to note that the top five brands (which together hold 69 percent of the market share) recorded a decline in value sales in 2024, while smaller manufacturers experienced positive growth, following trends in Serbia and Croatia.

—

photo NIQ

—

Thus, success in 2025 will depend on adapting to increasingly changing customer behavior, effective use of promotions, and quick responses to trends specific to individual categories.