In most European countries, food retailer brands maintained their volume share during the pandemic. “A sign of confidence,” according to private label manufacturers. However, selling prices were under pressure.
Rising penetration
In times of crisis, consumers turn to strong brands, as several brand manufacturers explained their strong retail sales since the outbreak of the corona pandemic. However, the health crisis has not caused a spectacular turnaround: the private brands of European food retailers have maintained their high market shares last year. In almost half of European countries, private label has a volume share of more than 40 percent, and in most countries penetration increased. In only two European countries the volume share is less than 30 percent: Turkey and Italy. This is evident from the latest edition of the International Private Label Yearbook, published by PLMA (the association of private label manufacturers) and research agency Nielsen.
Spain takes the lead
Spain took over the lead from Switzerland last year: private label there now has a 49.7 per cent share. Switzerland is in second place with 49.5 percent, followed by the UK (46.8 percent), Portugal (45.1 percent) and Belgium, where the share decreased slightly from 44.0 to 43.4 percent by volume. In value terms, Belgium’s market share fell from 31.6 to 30.6 per cent. According to Nielsen, the decline can be explained by falling sales of confectionery and snacks. In the Netherlands, there was a slight growth to 37.1 percent market share in volume, but the share in value dropped slightly from 33.3 to 32.8 percent. This trend is seen in more countries: there was some pressure on prices.
The strongest growth was measured in Hungary, Portugal and Sweden. In France, market share also grew strongly, but there the explanation is to be found in a modified measurement, where discounters, convenience stores and drives were included for the first time. “While taking account of multiple interruptions and ambiguities amidst the pandemic, the statistics for 2020 are an affirmation of consumers’ continuing trust in retailer brands,” commented PLMA President Peggy Davies.
