Decreases in March 2022 in the financial volume of sales of food products and current consumption in Israel, both compared to March 2021 and compared to recent months – according to Sterncast data, which are based on cash registers in retail chains. However, the field of chocolates and snacks has strengthened significantly, and probably not just because of the Purim holiday that took place last month.
The financial volume of food and beverage sales in Israel amounts to NIS 4.5 billion, a decrease of NIS 158 million and 3.4% compared to March last year. Excluding sales days, the decline is sharper and stands at 4.6%. The explanation for the decline lies in the timing of Passover, which last year was celebrated in March and the year falls in April. From the beginning of the year, the decrease in financial sales stands at 4.5% and amounts to NIS 586 million.
It should be noted that since the beginning of the year, all areas have recorded a real decrease compared to the corresponding period in 2021, with the most significant decrease being recorded in the area of household products.
The effect of the reforms on prices
Simultaneously with the decrease in the volume of purchases, there has been a 4.6 point increase in the Sterncast price index since the beginning of the year. Compared to February, in March 2022 there was a decrease of 0.7 points in prices, probably against the background of Passover operations, but compared to March last year it is an increase of 4.8 points.
The increase in the Sterncast price index is moderated this time, apparently against the background of the promotions held in the chains ahead of Passover. It can be seen that in the cumulative period all areas register an increase in the index, but it is particularly noticeable in the areas of household products and beverages, due to the reforms that came into force in recent months – the tax on disposable dishes last November and the sugary drinks reform in December. According to Sterncast, these reforms are expected to contribute to the high level of the index later this year as well.
The sales volume is mainly due to the chocolate and confectionery industry, which shows a significant increase in sales compared to March 2021, mainly due to the timing of the Purim holiday. It should also be noted that last February the closure was still in progress, and the period was characterized by the growth of the food and beverage market due to the closure of restaurants and bars.
Sales of savory snacks increased by 7.7% in March, sales of sweet and savory pastries increased by 10.9%, and chocolate snacks increased by 37.7% compared to March last year. According to Sterncast, the public has shown interest mainly in various candies, which have risen in rates of 140% -155%.
Disposable tool sales were down 34% compared to March last year. It will be interesting to see if there is a change in the field in the April data, with the celebrations of the first Seder night since the reforms came into force. Home cleaning products decreased by more than 16% in sales volume compared to March 2021.
An opposite trend in ultra-Orthodox society
At Sterncast, we examined the week before the holiday and the holiday week itself, and found that all areas recorded an increase in monetary sales compared to last year, with the food sector showing the lowest change of 0.2%, and individual cultivation recording the highest change – 5.6%.
The market share of the 20 largest suppliers in the economy in the current cumulative period was 63.7%, showing a 0.6% increase compared to the corresponding period last year – in contrast to the declines recorded in recent months.
According to Sterncast data, private label sales fell 0.3% compared to February. Recall that in January the segment recorded an increase of 0.1%, which led to the highest market share in the last 13 months, but in February a downward trend has already begun.
Sterncast also examines the data of the ultra-Orthodox company in comparison with the sales of the general population, when it comes to stores with significant characteristics that are expressed in geographical location, chain affiliation and average basket composition, and do not cover ultra-Orthodox company purchases in stores in the general sector.
Since the beginning of the year, the ultra-Orthodox society has registered a different trend from the entire market. While the cash sale records a slight increase of 0.3%, in the general population there is a decrease of 4.5%. Here, too, most of the declines are recorded in the areas of household products and beverages, and most of the increases are in the areas of food and grooming.
Sterncast is based on 2,600 stores consisting of national chains, pharma chains, supermarkets, convenience stores and convenience stores, which transmit real data to it and constitute more than 85% of total sales in the FMCG market – mainly food and beverages, as well as personal care products and household products.