It’s been said that the only strategy that has driven incremental sales in the past decade is private
label. Is that an overstatement? Not if you follow market research in the US where Private Label (PL)
has been around for more than a century.
Spending on private label products has increased and consumers have become “much more willing
to splurge on store brands than they would for name brands”, said Nielsen. Nielsen’s Total Consumer
Report also showed that private label sales surpassed $143bn over the past year (52 w/e May 2019 vs.
one year ago), and a sales increase in US store brands in 2019 of $14bn since 2015. Meanwhile, name
brand products witnessed a slower growth although sales still grew 2%.
Consumer behaviour has been changing a lot. It is said that today consumers are more willing to pay
for store brands rather than name brands with 40% of American consumers agreeing they would pay
the same or more for the right store brand product (Nielsen, Total Consumer Report).
The same picture is seen in Europe when looking at the latest data compiled for the PLMA’s
International Private Label Year Book. Private Label share accounts for 30% or more across 17
European markets. In the lead are Spain, Switzerland, and United Kingdom with 50% share or more
among 20 countries surveyed by Nielsen.