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Applications · Field Note 0008 · Jun 2026 · 6 min · KWL Research

Europe is trading down. Not by the same amount.

Trade-down is the most consistent behaviour in Europe this quarter, and the least uniform. The same move, the discounter against the national grocer, runs at wildly different intensity market to market.

Trade-down is the most consistent behavioural signal across Europe this quarter. It shows up most clearly as a search contest: the discounter against the national mainstream grocer, inside each market. The direction is the same almost everywhere. The intensity is not.

A continent-wide behaviour, fought on local ground.

The map

Trade-down intensity, by market
AlbaniaBosnia and HerzegovinaBulgariaDenmarkIreland: +1EstoniaAustria: +22Czech RepublicFinlandFrance: +8Germany: +13GreeceCroatiaHungaryItaly: +32LatviaBelarusLithuaniaSlovakiaLiechtensteinThe former Yugoslav Republic of MacedoniaMaltaBelgium: +11Faroe IslandsAndorraLuxembourgMonacoMontenegroNetherlands: +9NorwayPoland: +9PortugalRomaniaRepublic of MoldovaSloveniaSpain: +22Sweden: +12SwitzerlandUnited KingdomSan MarinoSerbia
SofterSharper

One glance shows it: Italy is the sharpest front in Europe, Spain and Austria close behind, and France among the softest of the major markets. Ireland barely registers, its discounter already long entrenched.

The league table

Discounter vs the national mainstream grocer, search, year-on-year
MarketThe contestGap
ItalyLidl vs Esselunga+32
SpainLidl vs Mercadona+22
AustriaLidl vs Billa+22
GermanyLidl vs Edeka+13
SwedenLidl vs ICA+12
BelgiumLidl vs Colruyt+11
NetherlandsLidl vs Albert Heijn+9
PolandBiedronka vs Auchan+9
FranceLidl vs Carrefour+8
IrelandAldi vs Dunnes Stores+1

Why the map matters

A pan-European grocery or FMCG strategy that treats trade-down as one setting will be far too aggressive in France and far too gentle in Italy. The same campaign pressure reads as decisive in Milan and as panic in Paris.

The map, not the average, is the brief.

Which way each market is heading

Where a market sits matters less than where it is going. In our two-year reconstruction, Italy moved into the two-speed, trading-down profile in mid-2025 and has held it. France moved the other way, out of the squeeze and into Resilient. Two markets that look alike on a single number are on opposite trajectories.

The same number, opposite directions
’24 Q3’24 Q4’25 Q1’25 Q2’25 Q3’25 Q4’26 Q1’26 Q2 Italy BlueBlueBlueBlue2-Sp2-Sp2-Sp2-Sp France 2-Sp2-Sp2-Sp2-Sp2-Sp2-Sp2-SpRes
ResilientTwo-speed, trading downBlue

What to do

Read market by market, the same behaviour becomes a different brief.

A different brief per market
MarketThe move
ItalyLead hard on value
SpainStrong value message
GermanyValue, with reassurance
FranceValue, with warmth
IrelandCompete beyond price

The takeaway

Europe is not one trade-down story. It is ten local versions of the same behaviour, each needing a different response.

Method and sources

Anchored Google Trends search, normalised so each market reflects its local competitive contest rather than Europe-wide brand movement. The discounters and grocers named are public consumer brands. A read, not a forecast.