A recent report from the IGD, European Private Label Growth, predicts future growth in private-label will come from Russia and Eastern and central Europe, where penetration levels are fairly low.
IGD senior business analyst Jonathan Gunz says: "Own-label is taking up more shelf space in stores in Western Europe. Categories like healthy eating, premium, value, organic and lifestyle have helped own brands become much stronger. This is also likely to happen in emerging European markets."
PLMA research manager Jeff Freeman adds: "There is a desire from Eastern Europeans to trade up. They are travelling more freely and have tasted delicacies such as British beer and French mustard, and they want to buy these back home."
The region remains largely dominated by small, traditional retailers, but Western giants such as Tesco are beginning to open up the market. Tesco's discount format has expanded rapidly within central and Eastern Europe and is the fastest-growing format in several of these countries.
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