The Struggle for Shelf Space: How Private Label Is Impacting Food Brands

Value remains central to private label but different price points have emerged

Value is still the core message that private label food needs to send. However, no longer confined to the economy segment, private label food is starting to offer value across the entire pricing spectrum.

The positions of major grocery chains have strengthened, leading to a focus on private label

The success of modern grocery retail formats such as discounters and hypermarkets has seen large retailers consolidate their positions at a faster pace than packaged food companies. Ultimately this has weakened the position of many brands and bolstered the availability of private label.

Budget private label options remain the initial offering from most grocery retailers

The premium segment has emerged as the next target for major grocery retailers, but with value at its heart

Private label sold at higher price points offer higher margins and will remain an attractive area for many retailers. Whilst indulgence, convenience and health will help to justify a higher price, value must still be the prime offering for premium private label food.

Convenience, health and taste remain the core way for a brand to add value

Despite its success, the growth of private label in food is not inevitable and many brands have managed to steal market share away from private label through more convenient formats, health innovations or simply better taste.

Creating emotional attachment to a brand is also vital to success

Building brand loyalty is the only long term defense against private label food and this will depend on the marketing efforts of brands. This can be achieved in many ways and provides a unique advantage over private label food.

The outlook for private label remains mixed

Despite private label losing share at a global level in packaged food, it has actually increased its share in most markets and will continue to be a major consideration for food brands.

What this report includes

• Top-level strategic analysis of how major consumer trends will influence global markets
• Consumer insight
• Impact across all relevant consumer markets
• Unique graphics and case studies
• Key market snapshots
• Accompanying presentation to synthesise main findings

Why buy this report

• Identify factors driving change now and in the future
• Understand motivation
• Forward-looking outlook
• Briefings and presentation should provoke lively discussion at senior level
• Take a step back from micro trends
• Get up to date estimates and comment