Private labels: two-digit growth

According to the Nielsen Retail Index, private label food product sales were up by 14 percent in the first half of the year, while household chemicals and cosmetics improved by 18 percent, compared to the same period last year. Total private label turnover of retail chains exceeded HUF 165 billon in six months. In an international comparison, the market share of private label products was relatively low in Hungary in the first six months, 22 percent among food products and 17 percent in the household chemicals category. In the food category, private label pet foods have a 49 percent share, followed by frozen food and morning cereals representing 32 percent each. In the non-food sector, household paper leads with a 44 percent share, followed by baby care (34 percent) and women’s hygiene (14 percent). Discount stores realise 50 percent of private label sales, in terms of value. Consumers are more familiar with private labels now and are more willing to accept them. According to Patrick Dodd, Nielsen’s regional director in Europe, private labels make it possible to be different from competitors, at the same time offering consumers a reasonable price.