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.
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.
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.
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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