Private Labels grow more than ever!
And Discounters appeal to all sociodemographics.
Private Label growth in Western Europe strongly linked to economic conditions
Looking back over the past 15 years we see four distinct phases of PL trajectories each of which is strongly linked to the economic climate of the time:
1). Strong growth in the recession during and after the bank crises
2). Modest growth, even decline in some countries, during the expansionary 2010 years
3). Declines during COVID and lockdown years
4). Massive growth since record inflation started in 2021
The economy matters and manufacturers must not cut down brand investments in recessions – otherwise they may find themselves reinforcing PL growth.
Discounters appeal to all income groups
The reach of hard discounters in Western Europe does not differ between high and low income households. The percentage of households shopping in Aldi or Lidl in Spain, Germany and the UK is almost the same among above average income households as among below average income households.
Income is not a good predictor whether or not households seek out low price channels. Aldi, for example, even over-indexes among high income households in both Spain and Germany.
