Private Label Food Drives Growth, Profits, Branding

Consumers are dynamic not static.  Food retailers have to keep-up with consumers or get left behind according to Steven Johnson, Grocerant Guru®, at Tacoma, WA based Foodservice Solutions® who stated “COVED-19 has garnered consumers attention, trial, and migration to food retailers private label products around the world.  

In the latest edition of PLMA's International Private Label Yearbook has shown that private label share is now above 30% in almost all of Europe, reflecting the same trends we are seeing in the US.

This year's edition of the yearbook, which incorporates Nielsen data to the end of 2019, shows that private label has gained market share in 14 of the 19 countries surveyed.  So, in the UK and Germany, private label share remains above 40%, while in Italy, its share rose by two percentage points, its biggest gain to date.

Yes, people around the world are stuck at home. However, branded private label is new to many, cost less and consumers either prefer it to a legacy CPG brand or rate it the CPG brands equal. One of the biggest increases in private label share was seen in the Netherlands, which was up more than seven percentage points to 37%, boosted by the inclusion of Aldi in the data for the first time. In France, where Aldi and Lidl are not included in Nielsen's data, private label holds a unit share of 31% and a value share of 25%.

Spain and Portugal, meanwhile remain strong markets for private label, with store brands accounting for half of all products sold in Spain, and 43% in Portugal. In central and eastern Europe, market share stayed above 40% in Austria and above 30% in Poland, Hungary, Czech Republic and Slovakia, while in Switzerland, private label accounts for half of products sold.

Norway led the way in Scandinavia, with private label market share climbing two percentage points to more than 34%. Sweden increased to 33%, while Finland stayed above 30%. Lastly, Greece reported private label market share of above 31% for the first time, while Turkey saw share rise two percentage points to more than 30%.

Is your brand looking for additional avenues of distribution? Remember the ‘Frozen Food Court’ we do. Success does leave clues and one should never forget the consumer is dynamic not static.  The trend is your friend.  Have you entered the Grocerant niche yet? What are you waiting for?

Success does leave clues. One clue that time and time again continues to resurface is “the consumer is dynamic not static”.  Regular readers of this blog know that is the common refrain of Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  Our Grocerant Guru® can help your company 253-759-7869.