Private Label increase

Posted by Filipa Silverio on Nov 23, 2021

Recently there have been many questions relating to shopping behaviour when inflation is high. Private Label increased sharply during the ‘credit crunch’ recession period from 2007 when food price inflation reached 8% – and it increased most where PL was already strong.

Although Private Label share is not growing on average in Western Europe currently, there are signs that it is rising in PL strongholds.We know that brand investment is critical in holding this back – advertising, innovation, trust and value for money.

 

  1. Times of hardship drive private label share growth – even more so in categories where PL share is highest
    Over the ‘credit crunch’ recession period PL shares increased significantly. The biggest increase in every country came in categories where PL was already strong relative to branded options. Make sure you invest in your brands to maintain difference, innovation and value for money.
  2. Private label share still remains stable on average in Western Europe
    Despite inflationary fears and the continued effects of the pandemic, PL share on average is stable in W Europe. This hides some growth in Spain (mainstream retailers) and Italy (Discounters) with reductions or stability elsewhere.
  3. Although average private label share is stable currently, it is growing where PL is strong
    There are already signs that PL share in ‘more commoditised’ categories is growing in every country. Brand investment will be key to countering this threat by driving trust, bringing innovation and providing value for money.