Private Label is growing in value share in the big countries in Western Europe (see last week’s edition).
What about the wider picture in Europe? Which factors are driving this share increase? And is the increase selective by product category?
Private Label value shares are growing again largely driven by the growth of Discounters and much higher than average price rises
After stability over the pandemic, PL value shares are increasing again. The continued rise of Discounters in many countries is a key driver as are price rises that are double that of brands.
Most of the Private Label share growth is driven by very high relative price increases and Discounter growth
Prices rising twice as fast as brands accounts for nearly half the PL value share growth. Another quarter is due to Discounter volume growth which in turn is driven by store number increases. The balance is volume in mainstream stores especially in France, NL and Spain.
Private Label share growth is not related to price inflation by category
Correlating PL volume share change with price rises by product category shows that there is no relationship. Shoppers are making whole basket decisions rather than individual choices by product.