The premium segment continues to play an important role in European consumption, but its meaning is changing. Even though the cost of living remains a major concern, consumers are not necessarily giving up high-end products. Instead, they are becoming more selective about when it is worth spending more.
According to NIQ, in Western Europe the Premium+ segment, which includes products positioned at the high end and above the category average, accounts for 28.2% of fast-moving consumer goods value (FMCG) and continues to grow, with a 4.1% year-on-year increase. The figure points to an apparently contradictory behavior: consumers are looking for value for money, but they are still willing to spend more when the added value is clear.
Premium becomes more selective
A more expensive product is no longer automatically perceived as a better product. To convince consumers, it must show immediately why it costs more.
This is particularly relevant in food and beverage, where value can be linked to quality ingredients, origin, recipe, processing, taste, naturalness, nutritional functionality, credible sustainability or better alignment with specific consumption occasions.
Premium growth is no longer limited to products for special occasions or occasional purchases. It is increasingly entering everyday consumption, from ambient food products to fresh categories. When other FMCG areas such as personal care are also considered, these categories generate 61% of total premium growth.
For food companies, this indicates that the high-end segment is not limited to gift products or specialties, but also involves categories purchased regularly.
What consumers expect from premium products
of Western European consumers say they would be willing to pay a higher price for products with high quality standards.
say they buy premium products because they consider them better than standard alternatives.
say premium products must justify their price through clear features or performance.
Source: NIQ, BASES Quick Question Survey, April 2026. Western European markets: United Kingdom, France, Germany, Spain, Italy, Netherlands and Sweden.
Ingredients, performance and proof of value
For NIQ, the new rule of premium is simple: evidence matters more than positioning. 63% of consumers associate premium products with high-quality ingredients, while functional features and tangible benefits carry more weight than price perception alone.
For the food sector, this means that value must be visible at the moment of choice. A product may have a better recipe, selected raw materials or a more carefully managed production process, but if these elements are not clear on the packaging, in the product page or in commercial communication, they may fail to influence the purchase decision.
Premium works when consumers can quickly understand why a product is different: better ingredients, a more recognizable origin, superior taste, greater convenience, a better consumption experience, credible nutritional benefits or higher production standards.
Brand loyalty is less automatic
Another important figure concerns the fragmentation of loyalty. According to NIQ, 49% of consumers say they buy a wider variety of brands than in the past. This means that premium cannot rely only on the historical strength of the brand: it must be earned again at every purchase.
This phenomenon is particularly relevant in food retail. Consumers compare more alternatives, discover new products online, assess reviews, look at packaging and often decide in just a few seconds in front of the shelf or on an e-commerce page. In this context, a premium product that does not communicate clearly risks being overtaken by alternatives that are easier to understand, even when its quality is strong.
Private label enters the premium space
NIQ highlights that private labels are making a significant contribution to recent premium growth.
This is an important shift for producers and distributors. Retailers are no longer competing only on price, but are building credible premium lines, often based on selected ingredients, origin, regional recipes, carefully designed packaging and a value-for-money proposition that consumers can easily understand.
Effective communication
For food companies, selective premium requires more concrete communication. Generic concepts such as "high quality", "tradition" or "excellence" are less effective if they are not supported by verifiable elements.
It can be more effective to explain which ingredients are used, where they come from, what changes in the production process, what benefits the product offers and why the consumption experience is superior to that of a standard alternative.
Distributors and importers can also use these elements in assortment selection. A premium product is more convincing when it offers clear arguments for buyers, retailers and B2B customers: margin, differentiation, potential rotation, credible storytelling and immediate reasons to justify the price.
A high price is no longer enough
According to NIQ, one in three consumers is trading up within categories, while 38% continue to buy premium products even under budget pressure when perceived value remains strong.
For producers, this means working on product, packaging and communication in an integrated way. For distributors, it means choosing premium references that can quickly explain their value. In summary, a high price works only when consumers immediately understand the "extra" they are buying.
