Private-label sales in Italy reached €11.7 billion in 2021, down from €11.8 billion a year earlier.
In the same period, the market share went down from 20.0% to 19.8%, but it was growing, compared to the pre-COVID period.
The preliminary data came from a report prepared by the European House – Ambrosetti and Ipsos, which was presented by the Modern Distribution Association (ADM) and Bologna Fiere on the occasion of the 18th edition of the Marca by BolognaFiere exhibition, taking place on 12-13 April in Bologna.
According to the report, private label accounts for 7.7% of the turnover of Italy’s food industry – up from 7.4% in 2019 and 2.9% in 2003.
The private-label industry consists of 1,500 mostly small and medium-sized companies, of which 92% are Italian, supplying food for modern distribution banners.
Growth In Demand
In recent years, private label has grown three times more than the food industry, thanks to the steadily increasing appreciation of end consumers.
The report claims that, in 2021, Italian consumers saved €2.1 billion, or about €100 per household, by purchasing private label goods, compared to the branded alternatives.
Equally important is private label’s contribution to employment, with around 240,000 workers employed in the supply chain, including the food industry, intermediaries and distribution.
The current context, characterised by increases in the cost of raw materials, energy and logistics, and the consequences of the conflict in Ukraine, should further boost growth of the private-label sector.
Looking ahead, the report estimates that the private-label industry will account for a €15.2 billion turnover and 24.2% market share in 2030.
Read More: Italy Urges Overhaul Of EU Farm Rules As Ukraine War Hits Supplies
© 2022 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: European Supermarket Magazine.