Some 60% of shoppers believe that private label products are as good as national brands when it comes to quality, innovation, sustainability, trust and delivering on claims, a new study has found.
According to the study, from IRI, a quarter of shoppers believe that store brands are 'even better' than national brands in terms of delivering these qualities – a 'significant shift' from previous periods.
Share Of The Market
The FMCG Demand Signals report found that private label now makes up 36% of total FMCG value sales in Europe – around €216 billion – up from 34% earlier this year.
In Spain, private label penetration has risen as high as 47%, while in Germany and the Netherlands, it stands at 39%. Germany and the UK have the biggest private label market in value terms.
The study examined more than 2,000 product segments and over 100 million SKUs across the US and several of the largest Asia Pacific and European (including France, Italy, Germany, Spain, UK and the Netherlands) markets.
“Private labels have traditionally offered lower prices to shoppers,” commented Ananda Roy, global SVP, strategic growth insights, IRI, “but these are not sustainable and inflationary price rises have been greater than on well-recognised brand names.
"Yet this has not dampened demand especially in the Chilled and Fresh, Ambient and Frozen segments in food categories, and Household and Personal Care in non-food categories.”
Elsewhere, IRI has anticipated that a price war is increasingly likely in early 2023 and thereafter as the outlook for FMCG demand darkens.