CHICAGO, ILLINOIS--(Marketwired - Jan. 21, 2014) - Market Research Company Euromonitor International released a new report today on the face and future of private label brands for retailers, focusing on the shift to private label, category performance globally and regionally and competitive analysis.
According to the report, constraints on disposable income pushed shoppers to trade down to basic items, providing an opportunity for private label brands to increase in popularity. Overall perceptions about the quality of private labels have been improving for decades, although they vary country to country depending on the maturity of the market.
Euromonitor's Global Consumer Trends Survey of 2013 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," said Editorial Director at Euromonitor Gina Westbrook. "Grocery retailers should further expand and develop their private label offerings to compete in this fierce marketplace."
To purchase the entire report, please see: http://www.euromonitor.com/the-new-face-of-private-label-global-market-trends-to-2018/report.
To download an extract with key findings, please see: http://go.euromonitor.com/new-face-of-private-label-global-market-trends-2018-strategy-briefing.html.
About Euromonitor International
Euromonitor International is the world's leading provider for global business intelligence and strategic market analysis. We have over 40 years of experience publishing international market reports, business reference books and online databases on consumer markets.
We deliver market research solutions to support strategic planning for today's increasingly international business environment. Our research offers in-depth market analysis on consumer goods and services industries worldwide, as well as economic, demographic and socio-economic data and insight on countries and consumers.
Euromonitor International is headquartered in London, with regional offices in Chicago, Brazil Singapore, Shanghai, Vilnius, Santiago, Dubai, Cape Town, Tokyo, Sydney and Bangalore, and has a network of over 800 analysts worldwide.