In Europe, we also see promotions still down and actually sequentially decreasing. Now it’s a different dynamic by market, obviously, but when we aggregate up, it looks like over the past few quarters, promotion activity is actually still decreasing. And that makes sense. If you look at the relatively little or small help to commodity costs, we see about $800 million after-tax help offset by about $1 billion of foreign exchange. And recall, we’re coming from two years, which combined have an impact of $7 billion of headwinds. So I think everybody is still recovering so the current pricing dynamic makes sense. We have not experienced retailer pushback beyond normal discussions on how to maximize value for their shoppers and for consumers overall.
And again, our model of driving innovation and therefore, superiority and sales, while we price and create value for retailers and shoppers seems to be resonating. On the volume side, we feel very good about where we are in the trajectory of volume growth. Again, excluding China, we’re already seeing volume growth of 20 basis points, sequential improvement in — versus the prior quarters, which we would have expected. And again, that’s in the context of 7% pricing still flowing into the market. We expect volumes will continue to grow. US strong. As we said, Europe, strong. Latin America and India are strong. So we continue to see us progressing on that trajectory.
Dara Mohsenian: Great. Thanks.
Operator: The next question comes from Rob Ottenstein of Evercore ISI. Please go ahead.
Rob Ottenstein: Great. I want to drill in on China a little bit. Number one, kind of in the short term, how is the business there progressing? Any visibility or improvement there? And when do you think that may turn positive? And then, a little bit longer term or kind of strategically, we are hearing from some of the other companies we talk to that the Chinese market may not be as profitable and attractive as perhaps they may have thought a number of years ago and that perhaps the nature of competition is changing in China again. So I’d love to get your thoughts on both China in the short term and the long term. Thank you.
Andre Schulten: Thanks, Rob. Good morning. I think we said all along that we don’t expect the China recovery to be quick, extensive or linear. And I think that’s playing out. The business health in China is really all driven by market dynamics right now. So total market volume continues to be down. It has been down over the past few quarters between 7% and 9%. Value is down around 5% over the past few quarters, and that’s the market I’m describing. So we’re operating within a market that is still contracting post-COVID reopening. That said, we do believe that China continues to be an attractive place for us to do business. We’ve been there for 30 years. We have a very strong organization on the ground, R&D capability, supply chain capability and commercial capability.
The Chinese consumer is a demanding consumer. The Chinese retail environment is a demanding retail environment and that generally plays to our strength. So we believe that, a, we can play a value-creating role in China, and we expect the Chinese market to return to mid-single-digit growth here over the coming periods. If you just look at the consumer structures, middle-income consumers, we have about 450 million, we estimate in China today. That will grow probably north of 700 million over the next five years. So there is a class of consumers that we believe are attractive for our businesses. And therefore, we believe that our business in China can create significant value over the next few years and we’ll continue to remain invested.
Operator: The next question comes from Lauren Lieberman of Barclays. Please go ahead.
Lauren Lieberman: Great. Thanks. Good morning. You’ve mentioned a return to volume growth in European focus markets, which is great to see, and obviously, market shares have generally held up well. But we started to see some pickup in private label share trends across Europe. You mentioned the European consumer being under pressure. So just kind of curious maybe some more broad thoughts there on Europe on market share trends that you’re seeing more real time versus what’s kind of already transpired in the reported results, more the go-forward look on European shares and volume trends? Thanks.
