Private Label Market Share Reaches Record High In Italian Retailers

By: Trademagazin editor Date: 2024. 01. 29. 09:52

Retailers in Italy are increasingly turning to private-label products to help counter inflation and the loss of purchasing power of Italians, who have long been fond of big brands.

The market share of private-label products rose to a record 31.5% of the total revenues of Italian retailers last year, from 30.4% the previous year and 28.3% in 2019, according to a study by Italian consulting services company The European House Ambrosetti (TEHA).

The cheaper end of private-label production is growing more than the premium one, the study found.

“All the retailers are investing heavily in private-label products,” said Mauro Lusetti, chairman of Italian retailers’ association ADM.

In addition to giving more control over prices, private-label products allow retailers to respond better and faster to consumer needs, Lusetti added.

In Italy, private-label penetration is among the lowest in Europe, but this also means that there is room to grow, he said.

The volume of private label products rose by €332 million at constant exchange rates in 2023, against a drop of more than €1.1 billion in overall retailers’ sales.

“A tough 2023 has just closed, which saw a reduction in sales volumes in all distribution channels, from discounters to supermarkets to small services,” said Valerio De Molli, TEHA managing partner and CEO.

ESM