Shoppers looking for smart deals on everyday groceries, to moderate the impact of price increases, are turning to private labels for better prices and excellent quality and value
BRACKNELL, Berkshire, England, May 16, 2023 /PRNewswire-PRWeb/ -- Circana, formerly IRI and The NPD Group, today launched its latest biannual "FMCG Demand Signals" report for Europe. Covering France, Italy, Germany, Spain, UK, and Netherlands, the six largest markets in Europe, the report reveals that the sector has reached a tipping point: private labels outpaced the popularity of national brands across nearly all categories. Private labels now make up 38% of total fast moving consumer goods (FMCG) value sales in Europe (€229 Bn).
The report forensically unpacks the impact of the pandemic, inflation, and the cost-of-living crisis on over 230 FMCG categories, more than 2000 product segments, and over 10 million SKUs. It reveals strong private label growth across all six of the largest markets in Europe, with the highest penetration in Spain (47%) and Germany (41%), and the lowest in the UK (37%), where shoppers continued to buy the national brands they trust to deliver good value.
"Private labels have come a long way since their arrival on the shelves 40 years ago" said Ananda Roy, global SVP, strategic growth insights, Circana "Retailer investments are paying off, as more consumers perceive private labels to be innovative and as good, or better than, many of the national brands that they compete with. As a result, they are no longer the 'cheap' alternative. Shoppers buy them because they offer something new and of good quality."
Key findings from the report include the following:
"Retailers have transformed private labels into strategy-led, consumer-focused, well-differentiated and data-driven alternatives to national brands," Roy said. "National brands are now having to regard many retailers as significant competition that they can no longer ignore. Retailers are clearly winning on many fronts. While not always the least expensive on display in the minds of shoppers, private labels offer good value, quality, a range of benefits that meet shopper's dietary choices or lifestyles and can be trusted as much as national brands with high equity sitting on adjacent shelves."
About FMCG Demand Signals
Circana's 'Demand Signals' report forensically unpacks the impact of the pandemic, inflation and the cost of living crisis on what consumers actually buy for over 230 FMCG categories, 2000+ product segments and over a 10 million SKUs across channels. Focusing on manufacturer and retail trends, it identifies key growing and declining categories and spotlights distribution, pricing and innovation trends.
Circana is the leading advisor on the complexity of consumer behavior. Through unparalleled technology, advanced analytics, cross-industry data and deep expertise, we provide clarity that helps almost 7,000 of the world's leading brands and retailers take action and unlock business growth. We understand more about the complete consumer, the complete store, and the complete wallet so our clients can go beyond the data to apply insights, ignite innovation, meet consumer demand and outpace the competition.
Learn more at http://www.circana.com.
David Riley, Circana, 9175435465, email@example.com