Beruflich Dokumente
Kultur Dokumente
A Review of Growth
Trends Around the World
TABLE OF CONTENTS
¾ Executive Summary 2
¾ Geographic Insights 9
¾ Category Insights 13
¾ Pricing Trends 17
¾ Methodology 28
The information contained in this report has been collected from ACNielsen
in 38 countries around the world. For questions or to obtain more detailed
information by country please contact your local ACNielsen Global Services
representative or contact either of the authors, Clare Nishikawa at
clare.nishikawa@acnielsen.ca or Jane Perrin at jane.perrin@acnielsen.com.
EXECUTIVE SUMMARY
How big is the Private Label market globally? Why is Switzerland the largest market?
Could the Private Label business become as big in the United States as it is in
Switzerland? What’s happening in the developing markets? Looking across categories,
where is Private Label most prevalent? Is Private Label expanding into new categories?
The Power of Private Label starts to answer these questions by looking at the latest Private
Label information from across the globe. Alongside a review of current trends in 38 countries
and 80 categories, this study looks at the market dynamics that have created a haven for
Private Label development across countries. Such factors as retailer concentration and the
presence of discounters have played a significant role in the development of these products.
The growing level of sophistication among retailers in marketing and product development,
along with the added resources they are putting into cultivating their own brands are other
contributing factors. In this study we have also included a look at the history and development of
a couple of very successful Private Label brands.
In addition to looking at sales in retail stores, we have included consumer panel data from 14
countries. The Power of Private Label closely examines the people that buy Private Label:
Who are they? How often do they purchase Private Label? How much do they spend on
Private Label? Do they purchase the same way across countries?
To illustrate the overall impact of Private Label activity, we have examined sales across 80
distinct categories and 14 different product areas. In addition, we have taken a look at a couple
of smaller, more dynamic categories (identified in ACNielsen’s 2004 series of What’s Hot
reports as the fastest growing categories globally) to see if Private Label has made any
significant in-roads into these growth areas. It is important to note that coverage of categories
within markets depends on data availability within each country. (Details of the number of
countries included for each category can be found in the methodology section at the end of the
report.)
Due to differences in volumetric measures across countries, value sales were used in the
analysis and then converted to US dollars for comparison purposes.
Europe maintained its position as the most developed Private Label region with an aggregated
Private Label share in value sales of 23% for the 17 European countries included in the study.
As with our 2003 study, the European countries of Switzerland, Germany, Great Britain, Spain
and Belgium were the five countries with the highest Private Label shares.
North America, which ranked second in regional Private Label shares, saw a significant growth
of Private Label sales, up 7%. The share of Private Label in this region is currently at 16%.
Although starting from a smaller base, Private Label in the Emerging Markets saw the fastest
growth over the last year, up 11%. Private Label now holds a 6% share of sales in the Emerging
Markets. This growth was primarily driven by the increasing strength of the modern trade (where
Private Label goods are more prevalent), as well as the entry of Private Label products into new
categories.
PL SHARE PL GROWTH
Emerging Emerging
6% 11%
Markets Markets
In comparison to year ago, global Private Label sales grew by 5%, outpacing manufacturer
brands (growing by only 2%). The result was a global gain of 0.4 share points for Private Label
versus the previous year. In fact, growth in Private Label sales outpaced manufacturer brands in
every region except for Latin America. (In general, Latin America continues to be a far less
developed Private Label market than the rest of the world.) The result was that Private Label in
Latin America lost 0.1 points versus manufacturer brands.
Interestingly, the region with the most developed Private Label market saw the greatest gain in
share points. Private Label sales grew in Europe by 4%, while aggregated sales of
manufacturer brands remained flat. The result was a gain of 0.7 share points for Private Label.
This growth is illustrative of the fact that sales of Private Label have not peaked…even within
the largest Private Label markets.
As seen in our previous studies, Private Label shares within the areas of Personal Care,
Cosmetics and Baby Food were the smallest at less than 5%.
PL PL
PRODUCT AREA PL SHARE GROWTH PRODUCT AREA PL SHARE GROWTH
1 Refrigerated Food 32% 9% 8 Non-Alcoholic Beverages 12% 3%
2 Paper, Plastic & Wraps (PPW) 31% 2% 9 Home Care 10% 2%
3 Frozen Food 25% 3% 10 Snacks & Confectionery 9% 8%
4 Pet Food 21% 11% 11 Alcoholic Beverages 6% 3%
5 Shelf-Stable Food 19% 5% 12 Personal Care 5% 3%
6 Diapers & Feminine Hygiene 14% -1% 13 Cosmetics 2% 23%
7 Health Care 14% 3% 14 Baby Food 2% 13%
On a global basis, across all of the 38 countries and 80 categories studied, Private Label
products were priced, on average, 31% lower than their manufacturer counterparts. The
variance across regions ranged from 40% lower in the Emerging Markets to 25% lower in Latin
America and Asia Pacific. It is interesting to note that the two least developed regions (from a
Private Label perspective), also had the smallest price differential versus manufacturer brands.
On a category basis, the average price differential ranged from Private Label being priced 46%
lower in Personal Care products to just 16% lower for Refrigerated Food. At the individual
country/category level, however, there were a number of examples where Private Label
products had an average price that was actually higher than the manufacturer brands. One
reason for this was the presence of ‘premium’ Private Label products. In addition, several
countries cited intense promotional price “wars” among manufacturers as a contributing factor to
lower manufacturer price points.
It is interesting to note that there is not a direct correlation between lower price and largest
share. Of the five product areas with the smallest price differential in comparison to
manufacturer brands, three had the largest share of Private Label and two had the smallest.
Refrigerated Food
Feminine Hygiene
Shelf-Stable Food
Confectionery
Personal Care
Diapers &
Frozen Food
Beverages
Snacks &
Health Care
Wraps
Home Care
Baby Food
Beverages
Cosmetics
Alcoholic
Pet Food
0%
-5%
-10%
-15%
-16%
-20%
-20% -20%
-25% -24% -24%
-26% -26%
-30% -27%
-35% -32%
-34%
-36%
-40% -37%
-45% -42%
-46%
-50%
Not surprisingly, the level of retailer concentration was closely aligned with the level of Private
Label development. Of the top ten countries (ranked by share of Private Label), nine countries
had retailer concentration of over 60%. The only exception in this group was the United States
whose retail environment was far more fragmented. Ranking 10th in share of Private Label
sales, the United States ranked 30th in retailer concentration. The top five retailers in the United
States accounted for only 36% of total country sales. The majority of other countries with such a
fragmented retailer landscape had a far less developed Private Label market.
Frequency of purchase was found to be a key driver of Private Label share. Looking across
countries, consumers purchased Private Label products at varying degrees. Those countries
with the highest Private Label share were found to purchase Private Label goods most often.
Consumers in Great Britain (with a Private Label share of 28%), were found to have Private
Label products in their basket on 82% of their shopping trips. Private Label consumers in less
developed markets generally purchased Private Label products on only 16% of their shopping
trips.
PRIVATE LABEL CONSUMERS RANGE FROM THE YOUNG TO THE OLD, THE RICH TO
THE POOR AND FROM SINGLES TO LARGE FAMILIES
Looking across consumers and households, Private Label purchasing varied based on
demographic composition.
Income: The share of spend allocated to Private Label products was generally higher in those
households with a lower household income.
Household Size: Households with more family members allocated a higher share of their total
spend to Private Label products.
Age: On trying to identify the ‘typical’ age of the Private Label consumer, there was no clear
trend that held true across regions.
How big will it grow? Today, Private Label has a 17% share of market globally and it is still
growing. Even in the most developed market of Switzerland, Private Label continues to extend
its reach. (In the last year, Private Label in Switzerland gained yet another share point).
The differential between the 17% global share and Switzerland’s high of 45% is a good place to
begin our predictions for the future. Somewhere in between these two percentages is the
answer but it is important to note that as the share in Switzerland grows so does the upper
boundary of this range.
As retailers with strong Private Label offerings expand their reach across categories and
countries, Private Label will continue to challenge the position of branded products in the minds
of the consumers. How high they will grow is yet to be determined.
DETAILED FINDINGS
GEOGRAPHIC INSIGHTS
The Power of Private Label looked at retail sales across 38 countries (encompassing Europe,
North America, Asia Pacific, the Emerging Markets and Latin America) and 80 categories.
Private Label value sales and share across these markets and categories grew, with 17 dollars
out of every 100 being spent on Private Label products. In 2003, Private Label share was found
to be only 15%.
As seen in the table below, the strength of Private Label varied widely across the countries
included in the study, from Switzerland (with a Private Label share of 45%), to the Philippines
(where Private Label sales hold an insignificant share of total country sales).
As in our 2003 study, the Emerging Markets, Asia Pacific and Latin America were again found
to have less developed Private Label markets than Europe and North America. In the Emerging
Markets, the strongest Private Label development was seen in Hungary and Slovakia where
Private Label sales accounted for 10% of total country sales. When looking across Asia Pacific,
the Pacific countries of New Zealand and Australia had far more developed Private Label
markets than the Asian countries. New Zealand’s Private Label share was 12% and Australia’s
was 9%. The Asian countries all had much smaller Private Label markets, accounting for 4% or
less of total country sales. The highest ranking country in Latin America was Brazil, where only
4% of sales were for Private Label products.
Europe maintained its position as the most developed Private Label region. In fact, when the 38
countries were ranked, based on Private Label share, eight of the top 10 highest-ranking
countries were in Europe. The other two were in North America. Both the United States and
Canada were amongst the most developed countries in terms of Private Label share.
Retailer concentration was measured as the share of sales held by the top five retailers within
each country. Of the ten most developed Private Label countries, nine had retailer
concentrations over 60%. The United States was the only exception among this group - despite
a more fragmented marketplace (with a retailer concentration of only 36%), its share of Private
Label was still among the top ten countries. Generally, across the countries, when retailer
concentration was low, the share of Private Label was also low.
At an individual country level, the ten countries experiencing the fastest growth of private label
were drawn from a number of regions including the Emerging Markets, Europe, Asia Pacific and
Latin America.
The most surprising presence in the list below is that of Spain. Being a large developed country
in terms of total packaged goods sales and already having a Private Label share of 26%, Spain
still ranked among the top ten in Private Label growth. This strong growth was attributable to a
number of factors including: the expanded availability of Private Label products (as stores with a
focus on Private Label opened more outlets), as well as further development and innovation of
Private Label offerings (such as anti-wrinkling products within face care).
MANUFACTURER
COUNTRY REGION PL GROWTH GROWTH PL SHARE
1 Croatia Emerging Markets 77% 0% 2%
2 Greece Europe 24% 2% 4%
3 Thailand Asia Pacific 18% 8% 1%
4 Argentina Latin America 18% 22% 3%
5 South Korea Asia Pacific 17% 1% 1%
6 Finland Europe 16% -3% 10%
7 Spain Europe 16% 6% 26%
8 Singapore Asia Pacific 16% 1% 3%
9 Colombia Latin America 15% 6% 2%
10 Hungary Emerging Markets 15% 5% 10%
The most significant share gains for Private Label were in the developed Private Label region of
Europe. Private Label sales grew in Europe by 4%, while aggregated sales of manufacturer
brands remained flat. The result was a gain of 0.7 share points for Private Label.
The share gains within Europe were driven by a number of countries. Looking globally at the ten
countries with the largest Private Label share gains, seven were in Europe. For five of those
seven countries, the growth rate of manufacturer brands was actually negative. In Spain, value
sales for both manufacturer brands and Private Label brands were growing but Private Label
growth was at twice the pace…the result was a gain of 1.8 share points for Private Label.
PL MANU PL SHARE
GROWTH GROWTH POINT
COUNTRY REGION RATE RATE GAIN
1 Spain Europe 16% 6% 1.8
2 Slovakia Emerging Markets 14% -6% 1.6
3 Netherlands Europe 8% -2% 1.6
4 Finland Europe 16% -3% 1.5
5 Sweden Europe 10% -2% 1.4
6 France Europe 3% -2% 1.0
7 Germany Europe 3% -2% 1.0
8 Croatia Emerging Markets 77% 0% 0.8
9 Hungary Emerging Markets 15% 5% 0.8
10 Norway Europe 14% 1% 0.8
A contributing factor to Private Label growth, particularly in Europe, was the growing presence
of Hard Discounters. Hard Discounters sell a very limited selection of products (primarily shelf
stable food) at a very low price. More importantly (for this study), hard discounters mostly sell
Private Label products. For example, within Aldi, Private Label products account for
approximately 95% of sales. Hard Discounters such as Aldi and Lidl are present in every
European country and are expanding this presence. As hard discounters continue to grow and
gain share, with more stores and wider consumer acceptance, so does Private Label.
CATEGORY INSIGHTS
In order to provide a fair representation of the role of Private Label across a wide range of
product areas, we chose a selection of 80 different categories within 14 different product areas.
For example, within the larger product area of Refrigerated Food, six categories were chosen to
provide a perspective on this area:
• Milk
• Yogurt
• Butter/Margarine
• Cheese
• Complete Ready Meals
• Meat/Poultry/Game
REFRIGERATED FOOD TAKES THE LEAD AS THE MOST DEVELOPED PRIVATE LABEL
PRODUCT AREA
Refrigerated Food, represented by the six categories cited above, had the highest overall share
of Private Label in the study, with an aggregated value share of 32% (see chart included in the
Executive Summary). Within this area, the Complete Ready Meals category had the highest
Private Label share, with nearly half of the category sales (47%) made up of Private Label
products. The most significant Private Label shares for this category were found in Europe. In
Great Britain, for example, 97% of sales in the Refrigerated Complete Ready Meals category
were for Private Label brands. Another significant Private Label category in Refrigerated Food
was Milk, with 43% of sales accounted for by Private Label brands.
In addition to Refrigerated Food, Frozen Food and Shelf-Stable Food also had a number of
entries in the top Private Label categories when ranked on share. In aggregated sales, each of
these product areas had over 20% of sales accounted for by Private Label brands.
As identified in the 2003 study, the Private Label stronghold in Paper Products, Plastic Bags &
Wraps (PPW) was still evident. This product area ranked second in Private Label share at 31%.
Furthermore, looking globally across all of the 80 categories studied, the category of Aluminum
Foil (a part of PPW) had the highest Private Label share at 49%. Penetration of Private Label in
this area across all of the countries was a significant contributor to share, with five of the six
categories in this product area having Private Label products present in every country.
As with the Power of Private Label study released in 2003, the lowest level of Private Label
development was seen primarily in three product areas: Personal Care, Cosmetics and Baby
Food. Interestingly, Personal Care Private Label products were available in most countries, but
the Private Label share was still only at 5% of value sales. For example, Shampoo Private Label
products were available in 37 of the 38 countries measured, but Private Label market share in
this category was limited to 3%.
For Cosmetics, however, availability of Private Label products did limit the value share. Lip
Stick/Gloss and Eye Shadow Private Label brands were only available in half of the countries
measured. Similarly in the product area of Baby Food, only 15 of the 33 countries measured
had Private Label Baby Food sales and only six of 32 had Private Label Baby Formula.
Interestingly, however, the Private Label category with the second largest share, Complete
Ready Meals, was also one the fastest growing categories. Complete Ready Meals grew by
14% in the last year. Similarly, other larger Private Label categories, including Chocolate, Water
and Dog Food, also experienced strong growth
PL MANU PL
CATEGORY PRODUCT AREA GROWTH GROWTH SHARE
1 Eye Shadow Cosmetics 34% 3% 4%
2 Drinking Yogurt Non-Alco Bev 28% 18% 9%
3 Chewing Gum Snacks/Conf 23% 4% 1%
4 Baby Food Baby Food 20% 3% 1%
5 Lip Stick/Gloss Cosmetics 16% -3% 2%
6 Complete Ready Meals Refrigerated 14% 7% 47%
7 Chocolate Snacks/Conf 13% 2% 7%
8 Face Moisturizers Personal Care 13% 7% 3%
9 Water Non-Alco Bev 13% 1% 14%
10 Dog Food Pet Food 12% 5% 22%
In the What’s Hot in Food & Beverages study, ACNielsen had identified Soy Based Flavored
Drinks as the fastest growing category, growing by 30%. In this study we looked at a more
comprehensive category definition, the aggregate of Soy Based Drinks and Milks (both flavored
and unflavored products). The value sales for this category grew by 26% over the last 12
months, with Private Label products having a small but expanded presence. In 2005, Private
Label brands captured a 5% share of aggregated value sales within the category, with value
sales growth of 45% over year ago.
Similarly, the 2004 What’s Hot in Personal Care study identified Tooth Stain Removers and
Whiteners as the fastest growing category. Unlike 2004, the total category did not show growth
in 2005 (declining in sales by 25% over last year), however, Private Label brands held a 5%
share of the value sales and experienced 66% growth.
PRICING TRENDS
The average price per category was calculated for each country by dividing the total dollar sales
by the total volume sold. Given the variances in units of measurement across the 38 countries
and 80 categories, it was not possible to compare the actual price per unit. Within each country,
however, the unit of measurement for a category was consistent, making it possible to compare
the average price difference between manufacturer brands and Private Label products on a
category-by-category basis.
PL PRICE PL PRICE
COUNTRY REGION DIFFERENTIAL COUNTRY REGION DIFFERENTIAL
1 Greece Europe -48% 20 Philippines Asia Pacific -32%
Regionally, the Emerging Markets had the greatest discount on Private Label products, 40%
lower than the manufacturer brands. European countries also experienced some of the largest
price differentials, with the average differential for Europe at 37%. Looking at the previous chart,
the countries with the highest price differential were primarily in one of these two regions, with
the exception of Australia (ranking number two with a price difference of 47%). Greece had the
largest differential, with Private Label products sold at half the price of their manufacturer
counterparts. This did differ, however, across categories. For example, Private Label Hair
Styling and Auto Dish products in Greece were actually priced two-thirds lower than
manufacturer brands.
At the other end of the spectrum, Thailand and Hong Kong both experienced only a 10% price
reduction for Private Label brands. This limited price difference was closely related to the pricing
approach of the retail formats that offered Private Label (i.e., Modern Trade as compared to the
more traditional shops). Similarly, the Modern Trade also introduced more “premium” Private
Label products into the market, thus lowering the price differential with manufacturer brands.
PERSONAL CARE PRIVATE LABEL PRODUCTS PRICED WITH THE LARGEST DISCOUNT
Looking at the pricing trends across the product areas included in the study, Personal Care
products had the widest differential between Private Label and the corresponding manufacturer
brands. Private Label products in this product area were, on average, priced 45% lower than
manufacturer brands. The following chart shows the Personal Care categories that
demonstrated this trend. Private Label products within the categories of After-Shave Preps,
Mouthwash and Shampoo were all priced at less than half the price of the manufacturer brands
on a global basis (a differential of over 50%). One reason for this large difference is that the
type of private label products available in the Personal Care area are of the more basic variety
with few added features or benefits.
Two Health Care categories, Pain Relief and Cold Remedies, and the Non-Alcoholic Beverage
category of Sports Energy Drinks, saw a similar difference in price (Private Label products
priced at half that of manufacturer brands).
Interestingly, Private Label products in the Chewing Gum category were priced at a premium
when compared to manufacturer brands. This trend was seen in seven of the 18 countries
where Private Label brands were available. The reasons for this trend differed across countries,
but a number of countries related the higher price to the fact that these products offered added
benefits (e.g., coated gum) and were, therefore, priced at a premium.
Alongside a general improvement in the quality of products, Private Label offerings now also
include products specifically focused on providing healthy alternatives. In addition, retailers
have used the strength of their Private Label brand to develop other services such as mobile
phones and financial services.
TESCO
The Tesco brand, launched in Great Britain in 1924, was one of the earliest Private Label
brands sold. Today, alongside the Tesco Value brand (usually depicted by blue and white
stripes), Tesco have a premium quality brand, Tesco Finest, which also spans most product
areas in the store. Overall, Tesco has been responsive to consumers and cultivated their store
brands to respond to a variety of consumer needs and beliefs.
• Tesco Organics was launched over a decade ago to provide consumers with a variety of
organic foods from cookies to sausages.
• In response to the growing share of the population with allergies or intolerances, Tesco
Free From includes over 150 products which are gluten, wheat or milk free.
• The Tesco Healthy Living range includes over 500 products which have reduced fat,
sugar and sodium for consumers who prefer a healthier alternative.
• Similarly, Tesco Carb Control was specifically developed to make it easier and more
convenient for consumers to follow a low carb eating program.
• On a more ethical note, Tesco Fair Trade products are fair trade certified which means
producers and small suppliers in the developing world are guaranteed to receive a fair
price for their produce contained in these products.
• Finally, Tesco Kids includes products from toothbrushes to fun size apples designed to
cater specifically to the next generation.
Furthermore, Tesco has also used its brand equity to expand into personal finance, insurance
and the telecommunication industry.
PRESIDENT’S CHOICE
With the launch of the first President’s Choice (PC) products in Loblaws in 1984, the aim was to
offer better value to Canadian consumers. Today, the brand has expanded beyond a price-point
focus to offer quality, health-focused alternatives to consumers in Canada as well as the United
States, the Caribbean, Hong Kong and Israel.
President’s Choice has now expanded its product offerings from food products to non-food
items including household and beauty products, pet food, lawn and garden and general
merchandise and more recently financial services and telecommunications.
On a similar, more news-breaking note, 7-Eleven has just responded to a growing consumer
need for healthy foods by introducing a line of Private Label functional foods and beverages
under its Formula 7 name.
Consumer panel data allowed us to look at the shopping behaviors and demographics of Private
Label consumers around the world.
In nine of the 14 countries studied, 100% of households had purchased Private Label products
over the past year. Penetration was most limited in Singapore, but even in Singapore 77% of
households purchased at least some Private Label products over the last 12 months. The other
countries where Private Label was not purchased by every household included Italy (98%
penetration), Hong Kong (96%), Chile (94%) and Colombia (80%).
France 73%
Canada 44%
US 45%
med Average
Italy 26%
42%
Finland 34%
Australia 59%
Colombia 18%
PRIVATE LABEL CONSUMERS RANGE FROM THE YOUNG TO THE OLD, THE RICH TO
THE POOR AND FROM SINGLES TO LARGE FAMILIES
Looking across consumers and households, Private Label purchasing varied based on
demographic composition.
Income
The share of spend allocated to Private Label products was generally higher in those
households with a lower household income.
Share of 50%
Spend
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Low Medium High Low Medium High Low Medium High Low Medium High
Interestingly, a handful of countries, namely, Singapore, Great Britain, Italy and Colombia,
experienced the reverse trend. Within these four countries, it was the high income households
that allocated the greatest share of their total spend to Private Label products. Reasons for this
were related to two very different situations. In some countries the premium products offered by
retailers attracted a significant number of households with higher incomes, thus raising the
share of spend on Private Label. In Colombia, however, the reason was quite different. Lower
income families, relying on public transportation, had limited access to Private Label brands due
to the fact that stores selling Private Label were further away from their homes (particularly
when compared to their corner stores).
Household Size
Overall, households with larger families allocated a higher share of their total spend to Private
Label products than households with smaller families.
Share of
50%
Spend
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Small Medium Large Small Medium Large Small Medium Large Small Medium Large
Household Size
It is worth noting that, although Great Britain followed the general trend, whereby the larger
households allocated the greatest share of spend to Private Label products (42%), small
families in Britain also allocated a considerable share of total sales to Private Label brands
(41%).
The only country where this trend was reversed was Italy. Surprisingly, in Italy, households with
only one or two family members, allocated a greater share of their total spend to Private Label
than did larger households.
Age
The ‘typical’ age of the Private Label consumer varied across regions as well as by local country
within the regions.
Share of 50%
Spend
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Young Middle Old Young Middle Old Young Middle Old Young Middle Old
Aged Aged Aged Aged
Europe North America Asia Pacific Latin America
Age of Household
Within both Latin America and North America, it was generally found that the younger
households allocated a greater share of their total spend to Private Label brands. Within Asia
Pacific, it was the older consumers that allocated a greater share of spend to Private Label.
Within Europe, overall, the middle aged consumers were the ones that gave the greatest share
of total spend to Private Label; however, the trend in Spain and Great Britain differed from this.
In Spain the greatest share to Private Label was allocated by the younger consumers and in
Great Britain by the middle aged consumers.
IN SUMMARY….
Private Label continues to grow. In over two-thirds of the markets studied, Private Label grew
faster than its manufacturer counterparts.
Europe continues to be the region with the highest share of Private Label. Switzerland
maintained its position as the number one Private Label country, growing to a 45% value share
of market.
With the growth of the modern trade, the Emerging Markets experienced the largest growth rate
for Private Label, albeit from a small base.
Refrigerated Food was found to be the product area with the largest Private Label share
(replacing Paper, Plastic & Wraps – formerly number one). This is primarily due to the increased
development of Private Label in the Complete Ready Meals category.
Globally, the price of Private Label brands was, on average, a third lower than manufacturer
brands. This price differential differed by country and category.
Around the world, almost all consumers, to some degree, use Private Label. The share of
Private Label was highest among larger families and those with lower incomes. Frequency of
purchase was found to be a key driving factor.
The growth of Private Label will continue. Private Label products today are being introduced into
both new markets and categories. The introduction of more premium Private Label lines has
changed both the shape and perception of what a “store brand” can be. How far Private Label
will grow is yet to be determined.
METHODOLOGY
UNDERSTANDING THE STUDY PARAMETERS
PERIODS INCLUDED
Information was collected for the years ending April 2004 and 2005.
To provide a wide perspective on Private Label trends, the retail measurement data includes
views of 80 different categories within 14 larger product areas - Alcoholic Beverages; Non-
Alcoholic Beverages; Snacks & Confectionery; Baby Food; Shelf-Stable Food; Refrigerated
Food; Frozen Food; Home Care; Paper Products, Plastic Bags & Wraps (PPW); Diapers &
Feminine Hygiene; Personal Care; Cosmetics; Health Care; and Pet Food. The actual
categories chosen were not necessarily those with the highest Private Label share, but rather
represented a varied cross-section of consumer products.
Due to the fact that category coverage can differ across countries, we have cited in our findings
the actual number of countries included in this study for each category. Where products were
segmented into different categories across markets, we have reconstructed the categories in
order to have the most consistent view available.
Channel coverage varied from country to country but generally included supermarkets,
hypermarkets and mass merchandisers. The data from some countries also includes
convenience stores and drug stores. Department stores, cash and carry stores, wholesalers
and food service outlets are generally excluded.
On looking specifically at the coverage of Private Label activity, certain exclusions should be
noted that may have affected the country specific trends observed. For example, data from the
hard discounters Lidl and Aldi was not included for the following countries:
Lidl: Czech Republic, Slovakia, Austria, Finland, France, Greece, Ireland, Netherlands, Norway,
Portugal and Sweden.
Aldi: Australia (liquor), Denmark, Ireland, France, Netherlands (Private Label products), United
States.
Additionally, the following stores are also excluded from this study:
In analyzing the share and growth trends, our focus was on value sales as opposed to volume
sales since the volume measurement units were significantly different across categories and
countries. However, it should be recognized, that since Private Label products are often priced
lower than their manufacturer counterparts, the value shares for Private Label are probably
understated (in comparison to their volume share). In order to create accurate value
comparisons, all local currency data was converted to US dollars using a constant exchange
rate across the two-year period.
When analyzing the pricing of Private Label compared to its branded counterparts, the average
price per volume measure was compared for each category and country. Average percentage
differences (compared to manufacturer branded products) were calculated to account for the
variation between kilograms, liters or pieces and hence allow comparisons to be made across
categories and countries.
In preparing this report, consumer panel data was collected by ACNielsen from 14 countries
covering four regions – Europe, North America, Asia Pacific and Latin America. Consumer data
was collected from a sample of household panels in each country to reflect the total population
of that country.
NORTH AMERICA
Canada
United States
In order to align the data sources, consumer panel data from each country generally covered
the same 80 categories included in the retail measurement data. For some countries not all
categories were available; for others a wider selection of categories was included in the
measurement of consumer behavior.