Sales of own-label household products have soared on the back of new, more premium offers, data compiled for The Grocer shows.
The own-label household market has climbed 6.6% in value to £2,106.6m over the past year, while the branded market has stagnated [Kantar Worldpanel 52 w/e 7 October 2018].
Own-label’s rise was partially fuelled by a 3.4% hike in prices, which outpaced the 2.5% increase in branded.
This indicated the arrival of more high-end retailer products, said Kantar analyst Julia Fine. “The premiumisation of own-label has been particularly noticeable in household products, with examples including Sainsbury’s premium dishwash range, Prism.” This showed that private label “does not have to be ‘no frills’”.
Posher own-label items had a particular appeal among younger shoppers, Fine added.
Despite price rises, private label household goods remain roughly £1 cheaper per pack than branded on average.
Toilet paper is one area in which lower prices and higher quality have proved successful. While value sales of branded loo roll fell 1.5% to £655.8m in the past year, own-label SKUs rose 9.9% to £623.7m.
David Entwhistle, sales director at paper supplier Wepa UK, said the “widening” of the price difference between branded and own-label to as much as 40% was one reason for the difference in fortunes. He added own-label quality had also “risen at a much faster rate” than branded.