Private label products account for an increasing portion of global retail sales, according to the latest report from Euromonitor International.
‘The World Market for Private Label’ report shows that the global private label market grew by 6% in 2004, comprising 16% of total retail sales.
The market for private label is dominated by Western Europe, which accounts for over 50% of global retail value sales, with Germany and the UK highlighted as the most developed markets in this sector. Private label sales in Germany totalled $15.2bn while in the UK sales were $13.9bn.
In its report, Euromonitor said the single most important factor in the rise of the global private label market has been the development and consolidation of chained grocery stores.
Private label dominance varies from sector to sector, depending on the strength of branded goods in that market. The research showed that in the beer, spirits and baby food sectors, private label accounted for only 1.3%, 1.5% and 1.6% of retail sales respectively in 2004.
Private labels have generally held strong shares in commodity sectors, such as disposable paper products, where branding is less important.
The sector seeing increased growth in private label is the ready meals or chilled/ processed food sector. Ready meals in the UK captured 69% of the market, according to Euromonitor.
Euromonitor International forecasts that the global market for private label will grow by about 6% in 2005 to reach 17% if the total retail sales, with the highest increase in share expected in the ready meals sector.
‘The World Market for Private Label’ report shows that the global private label market grew by 6% in 2004, comprising 16% of total retail sales.
The market for private label is dominated by Western Europe, which accounts for over 50% of global retail value sales, with Germany and the UK highlighted as the most developed markets in this sector. Private label sales in Germany totalled $15.2bn while in the UK sales were $13.9bn.
In its report, Euromonitor said the single most important factor in the rise of the global private label market has been the development and consolidation of chained grocery stores.
Private label dominance varies from sector to sector, depending on the strength of branded goods in that market. The research showed that in the beer, spirits and baby food sectors, private label accounted for only 1.3%, 1.5% and 1.6% of retail sales respectively in 2004.
Private labels have generally held strong shares in commodity sectors, such as disposable paper products, where branding is less important.
The sector seeing increased growth in private label is the ready meals or chilled/ processed food sector. Ready meals in the UK captured 69% of the market, according to Euromonitor.
Euromonitor International forecasts that the global market for private label will grow by about 6% in 2005 to reach 17% if the total retail sales, with the highest increase in share expected in the ready meals sector.
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