Private Label Today

PRIVATE LABEL’S MARKET SHARE CLIMBS IN 13 OF 20 COUNTRIES ACROSS EUROPE

The latest Nielsen sales data shows that the popularity of private label keeps growing across Europe. The data compiled for PLMA’s 2016 International Private Label Yearbook shows that the market share for retailer brands increased in 13 of the 20 countries tracked by Nielsen.

Brian Sharoff, President of PLMA, says, “The latest Nielsen statistics reveal clearly that 2015 was a good year for retailer brands in Europe. There were gains for private label in both large and small retail markets as well as in all geographic regions.”

Volume share climbed to 46% in the UK, reaching its highest level there since 2010. Prospects look good for even more gains in the future as private label plays an increasingly important role in the fierce competition between supermarkets and the discounters.

Private label share is growing again in France despite the best efforts by the A-brands to stop it through costly price promotions.
Volume share climbed over 35%, its highest level since 2012.  

In Germany, where supermarkets have battled discounters for decades, market share for retailer brands stayed above 40% for the eighth consecutive year. Private label now accounts for four of every ten products sold in Austria, and in Switzerland market share has stayed over 50% for more than a decade.  

In the north, all four of the Scandinavian countries—Denmark, Finland, Norway and Sweden—posted market share gains.

The Nielsen data shows that retailer brands have made extraordinary progress in Central and Eastern Europe. Volume share has climbed above 30% in Czech Republic, Hungary and Slovakia, while private label share in Poland is now nearly four times as high as when Nielsen first started compiling statistics there in 2003.

There also have been gains among the Mediterranean countries. In Spain, market share stayed above 50% for the fourth consecutive year, while shoppers in Italy, Greece and Turkey keep putting more private label products in their baskets. In Portugal, market share remains above 40%.

WHAT ARE PRIVATE LABEL PRODUCTS?

Private label products encompass all merchandise sold under a retailer's brand. That brand can be the retailer's own name or a name created exclusively by that retailer. In some cases, a retailer may belong to a wholesale group that owns the brands that are available to only the members of the group.

WHAT PRODUCTS ARE SOLD AS PRIVATE LABEL?
Major supermarkets, hypermarkets, drug stores and discounters today offer almost any product under the retailer's brand. Private label cover full lines of fresh, canned, frozen, and dry foods; snacks, ethnic specialties, pet foods, health and beauty, over-the-counter drugs, cosmetics, household and laundry products, DIY, lawn and garden, paints, hardware and auto aftercare.

WHAT ARE THE ADVANTAGES OF PRIVATE LABEL?
For the consumer, private label represents the choice and opportunity to regularly purchase quality food and non-food products at savings compared to manufacturer brands, without waiting for promotional pricing. Private label items consist of the same or better ingredients than the manufacturer brands, and because the retailer's name or symbol is on the package, the consumer is assured that the product meets the reatiler's quality standards and specifications.

WHO MAKES PRIVATE LABEL?
Manufacturers of private label products fall into three general classifications:

  • Large manufacturers who produce both their own brands and private label products.
  • Small and medium size manufacturers that specialise in particular product lines and concentrate on producing private label almost exclusively.
  • Major retailers and wholesalers that operate their own manufacturing plants and provide private label products for their own stores. 

A UNIQUE ORGANISATION FOR A UNIQUE INDUSTRY
The private label business is unique. It has it's own needs and objectives. That's why there is a trade association that serves the industry exclusively. Founded in 1979, the Private Label Manufacturers Association is the international trade organisation dedicated to the promotion of private label brands. With offices in Amsterdam and New York, PLMA represents more than 3,500 manufacturers and suppliers worldwide, ranging from companies that specialise in private label to those that produce private label products in addition to their own manufacturer brands. PLMA offers trade shows, programmes, and services that are specifically designed for the industry.