IBC Reports Weak Consumer Growth and Calls for Institutional Support
The association highlights challenges facing Italian industries due to declining purchasing power and rising operational costs.
The Italian Consumer Goods Manufacturers Association (IBC) has raised concerns about the weak growth of national consumption projected for 2025, alongside a simultaneous decline in purchasing power.
Specifically, forecasts indicate a modest increase of 0.8% in consumer spending, an improvement from the previous year’s increase of 0.4%, while purchasing power is expected to grow only 0.8%, a significant drop from 2% in 2024.
This information was discussed during the IBC Assembly, which represents a sector comprising over 35,000 companies, primarily small and medium-sized enterprises, with an annual turnover of approximately €500 billion, including €230 billion from the grocery sector, which comprises everyday consumer goods.
The sector employs about 1.1 million people, with 29% engaged in manufacturing.
It is critical to the future of the Italian industry as it invests around €17 billion annually in research and innovation.
According to a study conducted by REF Ricerche for IBC, families are adopting a very cautious approach and leaning towards savings, which currently accounts for 9.5% of household income.
This trend contrasts with an expected rebound in domestic demand.
Research from YouGov supports these findings, indicating that Italian consumers are increasingly relying on promotions and discount channels, along with performing more frequent but smaller shopping trips.
Flavio Ferretti, President of IBC, stated, "In a geopolitical and economic landscape marked by uncertainty, our companies are facing significant challenges in establishing business plans and investments.
We are experiencing high energy costs, commodity price volatility, and sourcing difficulties, compounded by credit access issues and high tax burdens that undermine our competitiveness.
Regarding tariffs, we urge European and national institutions to intervene to prevent a widespread escalation."
To address these challenges, Ferretti stressed the need for institutional interventions aimed at stimulating domestic demand and supporting the entrepreneurial sector.
He suggested that efforts should be made towards regulatory simplification and tax relief for businesses.
He also framed the opposition to sugar and plastic taxes within the context of fostering a sustainable transition that does not hinder competitiveness.
Specifically, forecasts indicate a modest increase of 0.8% in consumer spending, an improvement from the previous year’s increase of 0.4%, while purchasing power is expected to grow only 0.8%, a significant drop from 2% in 2024.
This information was discussed during the IBC Assembly, which represents a sector comprising over 35,000 companies, primarily small and medium-sized enterprises, with an annual turnover of approximately €500 billion, including €230 billion from the grocery sector, which comprises everyday consumer goods.
The sector employs about 1.1 million people, with 29% engaged in manufacturing.
It is critical to the future of the Italian industry as it invests around €17 billion annually in research and innovation.
According to a study conducted by REF Ricerche for IBC, families are adopting a very cautious approach and leaning towards savings, which currently accounts for 9.5% of household income.
This trend contrasts with an expected rebound in domestic demand.
Research from YouGov supports these findings, indicating that Italian consumers are increasingly relying on promotions and discount channels, along with performing more frequent but smaller shopping trips.
Flavio Ferretti, President of IBC, stated, "In a geopolitical and economic landscape marked by uncertainty, our companies are facing significant challenges in establishing business plans and investments.
We are experiencing high energy costs, commodity price volatility, and sourcing difficulties, compounded by credit access issues and high tax burdens that undermine our competitiveness.
Regarding tariffs, we urge European and national institutions to intervene to prevent a widespread escalation."
To address these challenges, Ferretti stressed the need for institutional interventions aimed at stimulating domestic demand and supporting the entrepreneurial sector.
He suggested that efforts should be made towards regulatory simplification and tax relief for businesses.
He also framed the opposition to sugar and plastic taxes within the context of fostering a sustainable transition that does not hinder competitiveness.
Translation:
Translated by AI
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