Retail & Consumer Spending Market: EU Retail Loses Share of Private Consumption, NIQ Report

A NielsenIQ (NIQ) report finds that EU purchasing power per capita rose nominally by 3.3% in 2025 to €22,425, while retail sales in the EU grew only 2.1%, slowing from previous years. Total available funds across the 27 EU states reached roughly €10.1 trillion. The share of private consumption spent in retail fell to 31.9% in 2025, with Germany the lowest at 22.2% and Croatia the highest at 48.3%. Retail sales growth varied widely across markets (Norway +13.1%, Lithuania +10.5%, Sweden +8.9%, Bulgaria +8.2%, Slovakia +8.0%); the UK saw a -0.6% decline. Average EU inflation dropped to 2.5% in 2025 but NIQ expects inflation to rise to about 3.1% in 2026, which could keep pressure on retailers as consumers shift spending toward services, travel and leisure.