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Rich countries, low prices. Romania does not catch the TOP 20 either



Reading time: 3 minutes

In three rich European countries, private labels accounted for more than half of the volumes of FMCG sold in 2021: Switzerland, Belgium and the United Kingdom. Although they have a purchasing power of the population above the European Union average, the fact that retailers’ own brands are so well received and with such significant market shares, makes the richest Europeans not feel inflation like those of ranking queue.

No less than 57.6% of products sold in Swiss supermarkets are private label. This makes Switzerland the European champion. The silver medal goes to Belgium, where its own (private) brand has a share of 54.6%. The podium is completed by the United Kingdom, with a volume share of 50.4% for private labels.

However, the value of private labels is usually significantly lower: a logical consequence of the fact that supermarkets often use their private labels as a cheaper alternative to Class A brands. But Switzerland is an exception: in terms of the figure business, private labels have a share of 51.9%. In Belgium, the difference is much larger: private labels account for 36.3% of sales, which indicates that private labels have significantly lower prices than national brands.

Big differences

The latest edition of the International Private Label Yearbook, published by the PLMA (Private Label Manufacturers Association) and the NielsenIQ research bureau, pointed out that rich countries, with a significant GDP per capita, also have strong own brands of commercial networks. , so the prices are lower, although the population is rich.

Since 1998, this yearbook has provided an overview of trends and figures for private labels in 18 European countries. In exactly half of the 18 countries surveyed, the volume share of private labels exceeds 40%. However, there are big differences: Turkey is a notable laggard, with a share of only 5.7% for private labels. Here the national brands have won the market, notes Retail Detail.

Peanut butter and surimi, the stars of their own brands in the Benelux

Note: by far the strongest growing private label in Belgium in 2021 was peanut butter, with an increase of no less than 35.2% in volume and 23.8% in value. The category of products with the highest share of private label is smoked fish (93% by volume, 91.7% by value).

The big winner in the Netherlands was Surimi, which grew by 23.5% in volume and 25.6% in value. The category with the highest share of private label in that country was fresh pizza (94.7% in volume, 95.4% in value).

Their own brands missed the start in Romania

Romania, unfortunately, entered quite late in the market of commercial networks that sell exclusive products under its own brands, does not catch even the TOP 20 European countries with private brands that obtain a significant market share. The national brands are still very strong on the Romanian market, but they are often more expensive than the stores’ own brands.

However, the battle of the future between the big retailers present on the market seems to be in the private label segment, where both quantitative and qualitative improvements are observed from one year to the next.

Virtually all store chain promotions and advertising campaigns use their own brands as tractor products to attract the public.