Private label turnover in Italy totalled €10.8 billion in 2019, up 4.1% compared to the previous year, a new study has found.
Private label sales now account for a 19.9% market share in the Italian grocery market, up 0.8% year-on-year, according to the study by The European House - Ambrosetti and Associazione Distribuzione Moderna (Adm).
Looking Ahead
For 2020, private label’s turnover should reach €11.7 billion, with a market share of 20.6%, while the forecast for 2025 is €17.2 billion and 24.6%, respectively, the same research found.
Over the last 16 years, the Italian food industry grew by €31.8 billion, with private label contributing approximately 20% of this growth.
The growth in private label penetration has also led to cost savings for Italian shoppers – consumers saved approximately €2.8 billion, or €110 per family, by purchasing more private label products.
According to the study, the private label sector supports 220,000 employees across all aspects of the supply chain: 75,000 in the food industry, 63,000 in brokerage and 82,000 in distribution.
Of the private label co-packers supporting the Italian grocery sector, some 80% are Italian businesses, while 90% are small to medium sized enterprises. In 90% of cases, co-packing firms have worked alongside their current retail partner for longer than two years, while in 50% of cases, the relationship has lasted longer than eight years.
Saving Energy
The study also highlighted the efforts to which Italian supermarket groups are reducing the use of electricity in their stores, which was down 30% between 2005 and 2017 (and down a further 2.9% in 2018), as well as water consumption (down 112 million litres per year).
Also, in the period 2012 to 2018, surplus food donations to food banks increased from 2,400 tonnes to 12,400 tonnes.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
