A new report from data agency IRI has found that the private-label retail sector share in Britain has seen the highest growth across Europe.
Private-label share in the country increased for the fourth year in a row, reaching 52.5%, according to the recent IRI Private Label report.
It analysed private-label penetration in eight countries, including France, Germany, Greece, Spain, the Netherlands, the US, Italy, and the UK.
Private-Label Boost In Britain
The +1pt boost in the UK is the highest increase in private-label market share across Europe, outstripping brands in most regional markets.
The segments which have seen the most obvious share gain in the UK are homeware and personal care products, including dishwasher products, air fresheners, and hair care products.
Private-label alcohol ranges have also seen a growth in the wine, sparkling wine, and ready-to-drink mix segments.
British retailers are also expanding ranges in on-trend categories, such as sweet and savoury snacking products including nuts, popcorn, and biscuits, IRI said.
Results Across Europe
The runners-up in private-label value share were Spain (42.6%) and Germany (40.1%), while the US had a value share of only 14.9%.
France and Greece were the only two markets which saw value share drops of -0.7pt and -0.3pt respectively, due to the long-lasting results of brand price wars.
Private-label performance across markets analysed in the report reached 39.4%, posting a growth of 4%. Unit share also rose to 48.2% (+0.1%).
IRI revealed that the price difference between brand and own-brand products is decreasing in a majority of the countries involved in the study. The company said that this rise in private-label numbers is a result of increasing brand prices and improving quality of premium own-brand ranges.
Private-Label Ascendancy
Olly Abotorabi, senior regional insights manager at IRI, commented on the report, "As economic prospects improve across the region, it’s perhaps surprising to see private label in the ascendancy. Since the 1980s when private label products were often perceived as poor imitations of brands, today they are often the product of choice. Private label has come a very long way."
He continued, "Retailers have invested heavily, particularly at the premium end of the market providing improved quality and differentiation in a bid to drive customer loyalty. It’s evident in retailer messaging through to sales growth across a variety of categories.
"Products are increasingly aligned to evolved shopper habits and virtues whether that’s health, indulgence, portability, sustainability or environmental issues."
However, Abotorabi said that the 'premiumisation' and continued promotions from brands are keeping their market share steady. He added that improved product quality, new lines, channel opportunities ,and buying partnerships are expected to help private-label improve its share.
Across Europe and the US, the highest private-label share was maintained in the frozen (47.1%) and chilled and fresh (44.8%) food categories.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. Click subscribe to sign up to ESM: European Supermarket Magazine.
