Private labels are enjoying unprecedented popularity
According to EY’s latest Future Consumer Index, inflationary pressure and the cost-of-living crisis have had a significant impact on consumer preference for private label products.
This article is available for reading in Trade magazin 2024/10
While earlier 28% of consumers said they were buying more private label products rather than branded ones because of rising costs, this now appears to be a lasting habit, as 66% of respondents said that these cheaper alternatives meet their needs as well as branded products. No wonder that 38% don’t plan to switch back to branded items.
Record profits in the US
Sales of private label products reached an all-time high in terms of both units and dollars in the first half of 2024 in the United States, according to data from Circana’s survey conducted exclusively for PLMA. Private labels’ market share was 22.9% in volume and 20.4% in value on 16 June. Total private label sales in the first six months reached USD 121bn, while sales of big nationwide brands totalled at USD 472bn.
Spaniards are also saving money by buying private labels
The situation is no different on the old continent: in Europe inflation is an important driver of private label growth, too. New research from DIA shows that in Spain, for example, six out of ten shoppers are trying to save money by buying more private label products, with savings of up to 10-25% per month. Retailers are doing whatever they can to meet consumer needs. For instance Migros in Switzerland is expanding its private label selection and offering lower prices, in order to reposition the company. //
Related news
New Product Launches In Spain Hit New Low, Study Finds
Innovation in Spain’s FMCG sector is at a record low,…
Read more >Spanish Eroski stays on course thanks to AI and private labels
Despite higher costs, supermarket group Eroski ended the quarter with…
Read more >Senior executives and users have sharply different opinions about the reliability of artificial intelligence – international survey
There is a sharp divergence in the views of senior…
Read more >Related news
Leadership change at Fornetti: Nándor Szabó is the new Managing Director
Nándor Szabó will take on the role of CEO of…
Read more >Drought, technological competition and collaboration: the domestic melon season has begun
The 2025 Hungarian melon season starts amidst serious challenges: the…
Read more >Change in Zwack management: Csaba Belovai is the new CEO of Zwack Unicum Plc.
According to the decision of the owners of Zwack Unicum…
Read more >