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.
Control Over Prices
In addition to giving more control over prices, private-label products allow retailers to respond better and faster to consumer needs, Lusetti added.
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.
Private Label in The Netherlands
Elsewhere, the percentage of private-label products on Dutch supermarket shelves reached close to 30% by September 2023,
With some 10,000 private-label SKUs on the shelves of leading retailers Albert Heijn and Jumbo alone, the scale of the private-label market in the Netherlands was reported by Dutch public broadcaster NOS, using data from Circana.