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Private Label

Private Label In Italy Exceeds €10 Billion Worth Of Sales

By Branislav Pekic
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Private Label In Italy Exceeds €10 Billion Worth Of Sales

Private-label sales in Italy grew by 4.6% in value during 2017 (compared to 2.8% total growth for the grocery sector), to account for 18.8% market share.

Nielsen data has shown that private-label growth has been achieved across all channels and in all product categories. It also noted that an increase in assortments and promotions has had a positive impact on consumer demand.

Private labels in Italy still have a small share, however, compared to the UK and  Spain, where the share is around 40%.

Local Pride

In Italy, private label has been able to exploit trends relating to the origin of products and to sustainability, Nielsen said.

In the 'Made in Italy' segment (2.5% growth), private-label share in each category is as follows: DOCG (5%), IGP (39.6%) and '100% Italian' (28.2%). In the CSR Certification segment (+4.8%), private label has also grown: sustainable by 4.5%, 'Friends of the Sea' by 22.5%, and Fairtrade by 86.6%.

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Elsewhere, private-label market share in organic is as high as 41%.

Own-Brand Growth

The growth trend for private label in Italy has also been confirmed by a report prepared by the European House – Ambrosetti (in collaboration with ADM and IRI), which was presented at Marca Bologna. This report indicates that private-label market share stood at 18.7% in Italy in 2017.

Sales of own-brand packaged consumer goods increased by €266 million in 2017, exceeding €10 billion for the first time, with sales volumes up by 1.7% and value sales rising by 2.7%.

The highest growth rate was recorded in the southern regions, where market penetration was lower than the national average.

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The number of private label SKUs has increased at different levels, depending on the supermarket type. In supermarkets, it grew by 10%, while in discounters, the range of own-brand products on offer rose by 9.5%. In hypermarkets, the SKU count grew by 5.5%.

The study also found that private-label products are using fewer price promotions than in years past, with the number of private-label products on promotion declining by 0.4% in hypermarkets, by 0.5% in supermarkets, by 0.6% in independent stores, and by 0.8% in discounters.

© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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