Global Powers of Luxury Goods 2023
18 March 2024
In the Czech Republic, annual private consumption and personal disposable income indicators show a generally upward trend between 2009 and 2027F. Private consumption increased from €6,942.07 in 2009 to €10,278.43 in 2021, with a dip in 2020 at €9,272.28. Projections for 2023-2027F indicate a continued growth, reaching €18,517.81 by 2027.
Personal disposable income experienced a similar trend, rising from €7,541.94 in 2009 to €12,158.62 in 2021, despite a slight decrease in 2020 at €11,047.19. Future projections (2023F-2027F) anticipate a consistent increase, with personal disposable income reaching €22,783.85 by 2027.
In the Czech Republic, online retail sales have been gradually increasing as a percentage of total retail sales between 2017 and 2026F. In 2017, online sales accounted for 5% of total retail sales, with a turnover of €2.1 billion out of the €39 billion total. The share of online sales grew to 8% in 2020 and 2021, reaching turnovers of €3.5 billion and €4.2 billion, respectively, out of the €42 billion and €46 billion total sales.
Future projections anticipate that online sales will continue to grow, accounting for 10% of total retail sales by 2026, with a turnover of €7.7 billion out of the €68 billion total. This trend highlights the increasing significance of online retail in the Czech Republic's retail market.
Consumer goods consumption in the Czech Republic has experienced growth in both non-food and food retail sales from 2017 to 2026F. Non-food retail sales increased from €19.8 billion in 2017 to €23.9 billion in 2021, with a slight dip in 2020 at €21.4 billion. Projections for 2022-2026F show continued growth, reaching €41.4 billion by 2026. Food retail sales followed a similar upward trend, growing from €20.8 billion in 2017 to €26.5 billion in 2021, with an expected increase to €45.9 billion by 2026. These trends indicate a positive trajectory for consumer goods consumption in the Czech Republic.
The consumer basket, representing the relative share of various goods and services in a typical household's expenditures, experienced slight changes between 2018-2019 and 2020-2021. Major expense categories such as food and non-alcoholic beverages, clothing and footwear, and housing, water, electricity, gas, and other fuels maintained their prominence. However, the transport category increased from 10.2% to 11.5%, while the shares of alcoholic beverages and tobacco decreased from 9.2% to 8.7%. The share of restaurants and hotels also rose, from 5.9% to 6.4%.
For the 2022-2023 period, further changes are anticipated in the consumer basket, with the share of housing, water, electricity, gas, and other fuels increasing to 26.7%, and the transport category decreasing to 10.4%. The shares of other categories experienced minor fluctuations, but overall, the structure of the consumer basket remained relatively stable, reflecting evolving consumer preferences and spending habits in the Czech Republic.