Private label products are experiencing a significant rise in popularity throughout Europe, according to a report based on feedback from 3000 shoppers in France, Germany, Italy, Poland, the Netherlands, and the UK. With a staggering 70% of consumers regularly purchasing private label products, and 50% of these individuals expressing their satisfaction with the quality, it is clear that private label items have captured the attention of consumers in the food and beverage industry.
This growing trend can be attributed to a range of factors, including the ongoing cost-of-living crisis. In fact, 85% of surveyed shoppers who buy private label products cited price as their primary motivation, with 48% specifically highlighting the influence of promotional offers. However, the appeal of private labels extends beyond affordability; consumers also recognize the superior taste and quality of these products, with 51% stating that they perceive no notable difference between private label and branded alternatives.
Moreover, 40% of respondents emphasized the importance of “cleaner ingredients” when justifying their preference for private labels. As Madalina Mitru, Strategic Marketing & Value Chain Manager at Amcor, explains, “While the research confirms that the price of private-label items impacts grocery shoppers’ purchasing decisions in the current economic climate, quality is still a crucial factor influencing consumers’ buying journey.”
Sustainability and locality are additional factors contributing to the popularity of private labels. Around 42% of consumers appreciate the “local production” aspect of private label products as it aligns with their concerns about sustainability. Furthermore, 34% have noticed positive progress in areas such as “food waste reduction,” “less excessive packaging,” and “more sustainable packaging” when it comes to private label items.
Packaging also plays a significant role in consumers’ attitudes towards private labels, with paper packaging, recyclable materials, reduced packaging, and the use of less plastic being key drivers for their increased purchase of private label products. In fact, 28% of consumers specifically prioritize packaging sustainability when making decisions about their shopping choices.
Mitru adds, “We see a growing shift towards eco-conscious grocery shopping for both private-label and branded products. Consumers increasingly expect their preferred products to demonstrate how they are improving sustainability. Retailers and brands can adopt more sustainable packaging to help retain customers and demonstrate their continued commitment to driving circularity and reducing their carbon footprint.”
Despite the positive trend, there is still room for improvement. Approximately 35% of consumers believe that manufacturers should make greater efforts to reduce excessive packaging, while 33% emphasize the need for more sustainable packaging options.
In conclusion, private label products are gaining significant traction within the food and beverage industry. These items offer a compelling combination of affordability, quality, and sustainability, making them an attractive choice for consumers across Europe. Manufacturers and retailers should further explore these key industry trends, implement innovative food processing technologies, adhere to relevant food and drink regulations, and develop effective marketing strategies to leverage this growing consumer demand.
