60% of consumers equate private label products with branded brands in terms of quality and sustainability

Wednesday, November 30, 2022

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At pre-pandemic levels, with value sales increasing by 5.4%, private label products are returned, according to the latest MCG Demand Signals Report by IRi.

Private label products make up 36.4% of sales value for 2022

Delving deeper into an inflationary environment, private label products now contribute €216bn, or 36.4% of global FMCG sales value to 2022, posting strong YTD growth across all major European markets.

Specifically, IRi’s study looked at more than 2,000 product segments and over 100 million private labels in the US and many of its largest markets in Europe and Asia. Through the study appeared that approximately 60% of consumers consider private label products to be just as good as branded brands in terms of quality, innovation, sustainability and reliability.

1/4 of consumers believe that private labels are better than branded brands

Throughout the pandemic, branded brands have outsold private labels, as consumers preferred to buy brands they "trust" more. Nonetheless, consumers who are "loyal" to private label products, are now on par with those turning to branded products purchases, according to the study. Therefore, it is not surprising that 1/4 of consumers believe that private labels are perhaps even better than branded brands.

Source: Food Reporter #0843/2022-11-23