The Update:
Consumer spending across Southern Europe in 2024 and early 2025 has shown a complex pattern of resilience and volatility. Spain led the eurozone with a 3.2% GDP growth in 2024, driven by robust domestic demand and a thriving tourism sector. Greece maintained a steady growth trajectory at 2.3%, supported by EU recovery funds and increased investment. Portugal experienced a notable 30% surge in consumer transactions during the Easter period, indicating strong seasonal spending.
Despite these positive indicators, underlying consumer sentiment remains cautious. In Italy and Spain, over 70% of consumers expressed significant concern about the rising cost of living, leading to a shift towards essential purchases and value-driven spending. This trend is evident in the fast-moving consumer goods (FMCG) sector, where Spain and Italy have seen growth driven by essential goods, while discretionary spending on items like alcohol and confectionery has declined.
Why It Matters:
For gambling industry executives, these dynamics present both opportunities and challenges. The increase in consumer spending on essentials suggests a cautious approach to discretionary expenditures, which could impact gambling revenues. However, the strong performance in tourism and seasonal spending peaks, such as the Easter surge in Portugal, indicate potential periods of increased gambling activity, particularly in tourist-heavy regions.
The demographic shifts, including an ageing population and varying responses to economic pressures, necessitate a nuanced understanding of consumer behaviour. Operators must consider these factors in their strategic planning, particularly in tailoring offerings to different consumer segments and adjusting marketing strategies to align with periods of higher discretionary spending.
Executive Takeaways:
- Monitor Regional Economic Indicators: Stay informed about regional economic trends and consumer sentiment to anticipate changes in spending behaviour that could affect gambling revenues.
- Align Offerings with Consumer Priorities: Adapt product offerings and marketing strategies to align with periods of increased discretionary spending, such as tourism peaks and seasonal events.
- Understand Demographic Shifts: Recognise and respond to demographic changes, including ageing populations and varying economic pressures across different consumer segments, to tailor services effectively.
