New research from international food and grocery think-tank IGD shows that own-label will account for more 26.8 per cent of food and grocery products by 2010.
IGD research indicates that Europeans will be spending around e430bn on supermarket own brands up 45 per cent from e298bn a year currently. The UK is the clear trend setter with own label already accounting for £2 of every £5 spent in a UK supermarket.
“The UK currently leads the way in terms of food and grocery own label,” said Jonathan Gunz, senior international business analyst at IGD. “The future growth in Europe will come from Russia and the rest of eastern and central Europe, where penetration levels are fairly low despite a relatively large grocery market.
“Shoppers in western Europe have already seen for themselves how own label is taking up more and more shelf space. Categories such as healthy eating, premium, value, organic and lifestyle have all helped retailers’ own brands become stronger. The same is likely to happen in the emerging markets of Europe and beyond.”
IGD’s researchers found that improvements in the quality, marketing and packaging of supermarket own-label products have all helped achieve greater consumer acceptance of many ranges. Now IGD forecasts retailers will diversify their own-label offer into completely new categories outside food such as electrical goods, financial services and even communications technology in response to changing customer needs and new opportunities.
No comments yet