Private-label value items have shown strong performance as consumers continue to trade down, as per analysis from the Agriculture and Horticulture Development Board (AHDB).
Value tier products, which are part of a specific money-saving and value-for-money own label range at supermarkets, have experienced significant growth. Although value tier products make up only a small portion (2.4%) of dairy volume (Nielsen, 52 w/e 12th August 2023), they have seen a considerable 47.9% year-on-year (YoY) increase in volume. Cheese value products have particularly excelled, witnessing a 56.7% rise in volume (Kantar, 52 w/e 6th August).
Moreover, red meat products have also witnessed a noteworthy YoY increase in volume, rising by 35.6%.
AHDB trainee analyst Tom Price states, “This YoY growth is driven by consumers seeking to reduce expenses due to rising prices. While price has become more influential to consumers, the data suggests that they don’t want to eliminate their favorite meat and dairy items from their diets completely; instead, they aim to save money by purchasing value tier alternatives.”
“Expanding the range of products available in the value tier, with a focus on staples such as mince, sausages, and cheese, presents an opportunity to further boost retail sales of red meat and dairy,” Price adds.
He emphasizes that not all retailers currently offer a value tier range, and expanding these ranges at all supermarkets could attract more customers. Price stresses the importance of effectively advertising these value tier ranges in supermarkets and ensuring clear communication to customers regarding their in-store location for easy accessibility.
Effective Trade Down Strategies
“It’s essential to remember that even when shopping within the value tier ranges, consumers still prioritize quality and sourcing credentials. Shoppers no longer solely focus on low prices; instead, they seek value for money and product satisfaction,” Price continues.
