Market research company Circana has said that cost-of-living pressures could mean the World Cup might not lead to a big increase in grocery spending.
Circana found that small rises in the amount of snacks bought when Euro 2024 aired did not lead to a major rise in the money shoppers spent, as prices fell due to brands running more promotions to capture a bigger share of the market.
It expects to see a similar trend this year, as people look for way to enjoy games at home without spending much more on food.
During the summer of 2024, crisps and snacks volumes increased by 1.4% but heavy promotions meant actual spending increased by only 0.5%. Circana said this was behind the longer-term trend for the category, citing football fever as encouraging extra consumption, but not enough to offset promotional discounts and deliver a clear value sales boost.
Alex Lawrence, senior strategic insight director for UK CPG at Circana, commented: “The excitement around England and Scotland games should boost beer and snack retail sales but the tournament is landing just as the cost-of-living situation worsens and more shoppers are looking to manage their grocery spend. Even the most ardent fans will look to trade down to cheaper products, buy on promotion and hold back on the beers just a little.
“The danger for brands is that they may sell more product but give away too much value through discounts to deliver year-on-year value sales growth.”
