The time where private labels consisted mainly of low-priced, low-quality products is long gone. Private label no longer equals copying the big brands at a lower price: private label brands are now at the forefront of innovation, allowing retailers to explore interesting concepts and get them onto store shelves in a relatively short time frame.
Successful positioning of private labels
Notably, private label brands are becoming better positioned than A-brands in responding to consumer demands for natural and organic health and wellness, as well as convenience, leading to a proliferation of NPD. For example, the European region accounts for 64.1% share of new private label launches in food and beverages (global, July 2021 - June 2022).
Retailers are much more aware of local variations in demand and they are able to use this information to their advantage. They also go beyond classic private label strategies by partnering with local and regional brands allowing them to offer a unique assortment of products. This is in line with the consumers’ demand for diversity and more local products.
The table below shows the top market categories as a percentage (%) of overall F&B launches tracked as “Private Label”: