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
Budget private label options remain the initial offering
from most grocery retailersWith the economy range an easier segment to penetrate for
private label food, most grocery retailers will focus on building up their
share of the market within this lower priced segment as it requires less
branding than other segments.
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
Creating emotional attachment to a brand is also vital to
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
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
Objectives of global briefing
Are private label foods really losing share to branded foods?
Asia Pacific: The only region where private label has declined
What's Really Driving Private Label in Food?
The top private label food markets are all developed markets
"Cheap" basic food items see highest private label penetration
Prevalence of discounters fuels private label penetration
Consolidation matters: Private label in developed markets
Consolidation matters: Private label in emerging markets
Economy private label food dependent on packaging imitation
The primary drivers of private label food consumption
Priority Areas for Private Label
Going in low: Private label food occupies the bottom of the range
Expanding its presence: Introducing multiple tiers in private label
How Tesco has taken its private label food portfolio to the next level
"Venture brands": Another tool to use in a private label portfolio
Is Tesco Finest's TV sponsorship a new threat to food brands?
Cross-category ranges needed for standard/premium private label
Foreign markets: The next target for high end private label food?
What are the priorities for private label food?
How Branded Food Has Fought Back
The core reasons why consumers still buy branded food
Taste: Food brands drive excitement through new "sensations"
Distribution: Retail formats shape availability of private label food
Health: Investment in research stifles private label packaged food
Convenience: A crucial selling point of branded food
Emotional attachment: A brand's ability to make food personal
How food brands have fought back against private label
What the Future Holds for Private Label Food
Trading down likely to return and aid private label in many markets
Has the spread of modern grocery retail come to a peak?
The retailer's dilemma: Sales growth vs margin growth
The end of the space race likely to herald new private label era
What does the future hold for private label food?