Private Label hurts category volume

A study of 449 FMCG categories in six European markets reveals an interesting pattern between Private Label share and category growth. Categories which experience an increase in PL volume share over the past four years (about 60%) are less likely to grow, both in terms of value and volume.

While the former is more logical given the lower prices of PL, the latter may be an indication that national brands offer a more solid foundation for reaching (and maintaining) high penetration and purchase frequency. 35% of the categories where PL share increased managed to increase volumes. In contrast, 42% of all categories where PL share declined experienced an increase in volume.