private label yourbarfactory blog

Several studies have shown a strong growth on the worldwide private label market. In Europe, private labels have the largest presence with a market share of more than 31%. In North America, private label market share reaches almost 18%, growing 8 times more than national brands.

Consumers tend to trust more and more private labels, as they represent a relevant alternative to name/national brands, mainly because of the following:

  • Lower cost :

Consumers believe that private label enables them to save more money. Thus, 71% of North-Americans and 82% of Canadians buy private labels to spend less.

  • Quality :

Consumers believe that private label quality is good. Indeed, 84% of North-Americans think that private label quality is at least as good as name brand quality. Private label took their products up-market to reach new expectations from customers, who are seeking for healthier products.

 

  • Differentiation :

Private labels are a way for distributors to diversify their product range and differentiate themself from competitors. They give customers a reason to buy a unique brand in their stores. It is a real differentiation factor and a consumer trusted focus driver.

Moreover, consumer take into consideration taste, ingredients or variety of products when purchasing private label products.

Therefore, private labels have a very bright future ahead. Higher trust levels from customers, improved quality and increasing variety of products ensure an excellent growth for private labels.

If you wish to take advantage of this promising market growth, get in touch with us to discuss your private label bar project. We will guide you in making your ideas a reality.

 

Sources :

Shopper Panel Spotlight : This week, our shopper panel takes on … Private Labels (FOMA, 2018)

The Rise and Rise Again of Private Labels (Nielsen, 2018)

Private Brand Intelligence Report (Daymon, 2018)

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