According to a study from Euromonitor International, “private label brands have become an essential component for consumers in developed markets but there is considerable room for growth in other markets.” How much room for growth? According to the report, 89% of consumers in developed markets already buy private label brands, which offer discounted prices compared to name brands. However, in Russia, for example, the trend has not yet taken off, with only 23% of shoppers choosing private labels. This large gap in adoption rates leaves much room for growth.
In India and France, about a quarter of the population already intends to purchase more private label goods over the next year. According to the study, poor economic situations have led to more openness toward the private labels, and the trend is expected to continue.
To further gain market-share, private label brands are increasingly employing strategies used by more established brands. By ramping up sustainability and ethical considerations, increasing product transparency, and putting greater emphasis on quality, the private labels hope to win over more consumers. Well-known brands have been working to gain consumer trust for decades, whereas private labels may be new to many shoppers. This means they have to work twice as hard to break through that trust barrier, especially for products geared towards children and babies.
But it does seem that more consumers are willing to try something new when it comes to regular pantry staples, including canned goods. Retailers like Aldi, for example, may have carried a stigma years ago for offering off-brand products at a discount, but today are gaining popularity. With this progress, comes a greater market-share for private label brands overall. We expect to see the trend continue as more people put value ahead of brand name.
Star Label Products has years of experience working on private labels that appeal to customers. To learn how we can meet your label requirements, please feel free to request a quote online, or call us at 1-800-394-6900.