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The New Face of Private Label: Global Market Trends to 2018

Global private label sales are especially favoured in India and France in 2013


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2014-02-07 03:59:01 - The New Face of Private Label: Global Market Trends to 2018 - a new market research report on companiesandmarkets.com

The 2013 Global Consumer Trends Survey noted that consumers in India and France were most positive about private label with 27% and 23% saying they intended to increase purchases of private label products over the next 12 months. However, private labels are still a little known concept in Russia where as many as 23% never buy private label products. Private label penetration is highest in Switzerland with 37.7% and lowest in China with .4%.

Within private label products globally, packaged food accounted for the majority of fast moving consumer goods with 77% of value sales in 2012, but the strongest penetration for private label was found in tissue and hygiene products at almost 14% as products such as toilet

 

 

tissue and paper towels are easy for retailers to distribute and generate good margins. The private label share within packaged food was at 12%.

Retailers are also investing more into marketing campaigns focusing on packaging, advertising and promotions to achieve parity with branded products and to remove negative connotations towards private label brands.

The somewhat negative economic outlook is a positive for private label because consumers will remain frugal for a while longer. Private label has enormous long-term growth potential since sales are still equal to only 10% of all grocery value globally. Grocery retailers should further expand and develop their private label offerings to compete in this fierce marketplace.

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Mike King
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