Private labels likely will continue gaining market share this year as more European retailers launch and expand them. Research from the Private Label Manufacturing Association shows growing support for private-label products, and some predicted that store-brand sales will increase 23% this year.
A study from the Private Label Manufacturers Association says consumers can shave 33% from their grocery bill if they buy only private-label products. Private-label aspirin is on average 60.6% less expensive than national brands, the study found, while pasta sauce is 40% cheaper. Store-brand carbonated drinks can save consumers as much as 46.8%, according to the study.
Sales of private-label products jumped to $80 billion this year, up from $73 billion in 2007, according to research. Store-brand labels are increasingly high-end, with eye-catching packaging and premium ingredients.
Sales of private-label goods outpaced those of name-brand goods in a recent survey by ACNielsen, with sales growing at twice their name-brand competitors' rates. Retailers are increasingly devoting more shelf space to their own store-brand goods and are expanding into categories including cosmetics and baby food.