2023 will kick off with new price hikes on supermarket shelves, with increases of up to over 10% on key product items. Market Pass and the household shopping basket aim to put the brakes on the price rally, something that seems difficult to achieve, since forecasts for the new year point to price increases for at least 500 products.
The latest price lists Data from suppliers to supermarket chains indicate that in 2023, consumers will continue to grapple with the monster of high prices. Price increases of up to double digits are expected for the following products:
- Olive oil
- Cheese-Making
- Pasta
- Detergents
- Baby Diapers
- Refreshments
- Toast
- Cookies
According to reports, price increases are expected to reach as high as 35% for some products, while on average they will range from 12% to 13%. Companies have already sent new price lists to supermarket chains, reflecting price increases for many product categories.
At the same time, sales at supermarket chains are rising, while the volume of products sold is declining, because people are struggling more than ever.
At the same time, private-label products are experiencing significant growth. According to data from IRI, these products were developed between Januaryand October at a rate of 13.9%, while during the same period, supermarket sales rose by 4.6% to 6.93 billion euros. The rise in sales is due to the higher prices at which products are sold in supermarkets, as sales volume declined by 1.3% over the first ten months of the year. And all this in a year when tourist traffic is particularly heavy.
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Business owners in the industry say that while they are doing everything they can to keep prices down, this is by no means easy because their costs are rising significantly.
It should be noted that when industry representatives met with Development Minister Adonis Georgiadis, they made it clear that they could not commit to keeping prices in check, because raw material costs are rising significantly, and if they do not follow market rules, this could potentially undermine the viability of their businesses.
The increase in supermarket sales does not appear to be enough to prevent further price hikes on products amid inflationary pressures.
It should be noted that during the ten-month period from January through October 2022 Supermarket sales rose by 5%. This increase is attributed to price hikes, according to data from the market research firm IRI.
Specifically, supermarket sales for the ten-month period totaled 6.933 billion euros, up from 6.605 billion euros during the same period last year, marking a 5% increase, which is attributable to price hikes rather than an increase in demand.
It should be noted that the largest price increases from the beginning of the year through October were recorded for cooking supplies (11.3%), personal hygiene products (11.2%), and dairy products (10.2%).
Decline in consumption
In fact, the decline in consumption, in terms of sales volume, also affects food, detergents, as well as personal care products and cosmetics.
Beyond that, consumers are scouring supermarket after supermarket for the best deals, while the «household basket» initiative appears to have failed as a measure to reduce food prices, resulting in the decision to implement the “market pass” starting next February, which has sparked strong backlash from both consumers and industry stakeholders. According to NielsenIQ data, 29% of consumers—the highest percentage ever recorded by the company—visit multiple supermarkets to find products on sale.
Significant price increases—so far
It is worth noting that all of the above come on top of the already high prices prevailing throughout the country. According to official data from the Hellenic Statistical Authority, on an annual basis there have been significant price increases, exceeding the Consumer Price Index, in: bread and cereals (18.7%), meat in general (16.7%), fish in general (1.9%), dairy products and eggs (25.3%), oils and fats (20.4%), fruits in general (3.7%), vegetables—general (12.6%), sugar—chocolate—sweets—ice cream (8.6%), other foods (12.9%), coffee – cocoa – tea (11.9%), mineral water – soft drinks – fruit juices (8.9%), alcoholic beverages – non-served (7.1%), clothing and footwear (10.9%). Meanwhile, between November and October of this year, price increases continued for food items such as: bread (1.3%), other bakery and confectionery products (2.3%), beef (1.4%), yogurt (4.4%), cheese (2.8%), olive oil (3.2%), fresh fruit (3.4%), frozen vegetables (4%), fruit juices (4.5%), and alcoholic beverages—not served (0.7%).
