Consumers Continue to Embrace Private Label
Store Brands Prioritise Sustainability
Delivering More Value
Value Garners Social Kudos
Own-label lines are working well for budget-conscious consumers – they now make up 35% of all grocery sales across Europe, and 16.5% worldwide (IRI, 2022). Meanwhile, British shoppers are turning to private-label ranges to cope with the rising cost of living – demand for supermarket value products swelled by 12% from June 2021-22 (Kantar Worldpanel, 2022).
Own-label lines are working well for budget-conscious consumers – they now make up 35% of all grocery sales across Europe, and 16.5% worldwide (IRI, 2022). Meanwhile, British shoppers are turning to private-label ranges to cope with the rising cost of living – demand for supermarket value products swelled by 12% from June 2021-22 (Kantar Worldpanel, 2022).
Summary
Consumers Continue to Embrace Private Label | Own-label lines are working well for budget-conscious consumers – they now make up 35% of all grocery sales across Europe, and 16.5% worldwide (IRI, 2022). Meanwhile, British shoppers are turning to private-label ranges to cope with the rising cost of living – demand for supermarket value products swelled by 12% from June 2021-22 (Kantar Worldpanel, 2022). |
Store Brands Prioritise Sustainability | Retailers are recalibrating their product lines to satisfy the large and lucrative contingent of consumers looking for sustainable and ethically manufactured goods. In the US, for instance, 50% of private-label buyers are interested in sustainably made products (Daymon, 2022). |
Delivering More Value | In the US, 47% of online grocery shoppers are more likely to use a retailer based on its private-label selection, compared to 32% of in-store consumers who choose a supermarket for its own-label line (FMI, 2022). Online supermarkets and ultra-fast delivery brands are investing in their own private-label lines. |
Value Garners Social Kudos | Driven by targeted TikTok campaigns from retailers, private-label products are garnering praise online, with mentions on social media in the UK up by 28% between January and February 2022 (Immediate Future, 2022). Meanwhile, Facebook is a thriving platform for budget-savvy consumers to make connections with each other – see the 170,000-strong group Aldi Shoppers UK. |
As the cost of living spirals at unprecedented levels (see Cost-of-Living Crisis: Feeding Families), shoppers who embraced private-label products during Covid-19 (see Future Food Values) are doubling down on them. And retailers have much to gain by elevating their value lines, imbuing them with sustainability and ethical credentials, and revamping branding to enhance desirability.