In collaboration with
PlanetRetail.net
Private Label, 2013: The global grocery trends to watch
Private Label, 2013
The global grocery trends to watch
DENISE KLUG
Associate Analyst
MATTHIAS QUECK
Research Director
About Us
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label industry. Our mission is to drive food and non-food product innovation, support brand protection, and accelerate timeto-market for retailers, manufacturers and food service companies.
The group is committed to enabling collaborative processes between retailers and manufacturers thereby optimizing
the sourcing, tendering, launching and development of consumer goods, while controlling product information and
ensuring product and food safety. This not only supports the protection of brands, but also maximizes profitability and
competitiveness throughout the product lifecycle management process.
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PlanetRetail.net
Private Label, 2013: The global grocery trends to watch
Contents
1. Introduction
Private label growth
1
2. Rebalancing The Equation
Finding the right balance between manufacturer and retailer brands4
3. When Less Is More
Big opportunities for smaller pack sizes9
4. Collaborating for mutual growth
Finding partners for development and distribution
11
5. Democratisation of Quality
Taking Good-Better-Best to a new level
16
6. Conclusions
20
December 2012
PlanetRetail.net
Private Label, 2013: The global grocery trends to watch
December 2012
PlanetRetail.net
Private Label, 2013: The global grocery trends to watch
1. Introduction
Private label growth
G
lobally, private label penetration is highest
in Europe, particularly in the saturated and
consolidated Western markets. Switzerland
leads the pack with a value share of 45.4% for
2011, according to PLMA/The Nielsen Company.
This compares with 52.6% by volume, which
underlines the generally lower prices for
private label than national brands - one of their
traditional and most important features. Globally,
Switzerland has remained the only country where
more than half of items sold are privately labelled,
thanks primarily to its leading retailer Migros’ own
brand-focused philosophy.
While the UK follows closely by value, second
place has now been taken by Spain with volume
share standing at 49.0%. The leading market
outside Western Europe is Canada, where every
fourth dollar is now spent on retailers’ own
brands. The US value share was up to 18% from
17.5% in the previous year and 15% in 2005. Here,
also, the volume share is higher with 21.9%.
The global average 2011 stood at 15% for sales.
Emerging markets still lag behind, but with shares
growing relatively swiftly, not least due to the
fact that international players expand in these
markets and food prices tend to rise.
Headwinds for brands
Worldwide, brands are feeling the increasing
headwinds coming from retailers working
zealously on launching, extending and improving
their house brands. Some retailers make no
secret of the fact that the balance between
manufacturers and themselves has often
favoured the latter, allowing them to play hardball
with brand manufacturers, especially when it
comes to price negotiations.
Private Label: Share of Market by Value, 2011 (%)
Note: Includes selected markets only. Includes edible food and beverages, household goods and health & beauty care. Inclusion of fresh fruit & vegetables may vary.
Source: PLMA Yearbook 2012/The Nielsen Company for European markets, Turkey and USA; Planet Retail estimates based on Nielsen data 2009 for other markets.
December 2012
1