Private label penetration in the us

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Popular local brands are losing market share to private store labels as consumers slowly migrate to these no-name brand products that are seen as better value for money. This is according to Michael van Wyk, a Deloitte Western Cape consumer practice leader, who said that although the migration was slow, it was certainly happening. Van Wyk drew his findings from recent studies on private labels, which showed global average penetration at almost at 15 percent.

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CHICAGO — Store brands have taken a bigger bite out of the snack market, driven by changing consumer perceptions and a growing assortment. Millennials, previously the least trustful of private label products, are now the most likely cohort to buy them, said Jordan Rost, vice-president of consumer insights at Nielsen. That is the classic textbook definition of disruption.

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The development was completely customer driven. A few months before the launch Much now depends on the economy and consumer expenditures recovering from external and internal pressures.

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In a nutshell, that describes how manufacturers of brand-name products react to competition from private labels. Collectively, private labels in the United States command higher unit shares than the strongest national brand in 77 of supermarket product categories. And they are collectively second or third in of those categories.

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The value for money continuum—from premium though to budget private label—is being stretched, and retailers are innovating quickly to meet shopper expectations, which has strategic implications for brands. The largest markets for private-label products are found primarily in the more mature European retail markets. Comparatively, private-label still has much room for growth, especially in North America, where penetration is still relatively low.

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By Victor Martino 13 March Font size Email Print. Historically in the US, private-label CPG brands the oldest of the numerous terms were merely low-priced knock-offs of the top-selling brands in various categories.

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Much has been made about evolving consumer attitudes to private label productsbut private label penetration has actually slightly dipped across most CPG channels over the past 2 years, according to [download page] a November report from SymponyIRI. Penetration has dropped by 0. For the most part, private label buy rates are following that pattern.

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Private label penetration has not developed uniformly across FMCG industries; indeed the packaged food and tissue and hygiene industries have much higher private label penetration than the likes of beauty and personal care. Echoing global patterns, private label penetration within the packaged food industry also varies from category to category. Furthermore, while leading private labels e. How does the private label landscape in Australia compare with New Zealand?

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