Focus on FROZEN: PL in Britain and Europe
A category comparison, complete with strengths, challenges, and best performing sectors
The relationship between British consumers and private label, is a long and lasting one. The UK private label sector has one of the highest market penetration percentages in Europe, reaching an overall market volume of 45.4% in 2014, right behind Switzerland (53%) and Spain (52%), with PL accounting for nearly half of all products sold in supermarkets and discount chains. This comes as no surprise since, for a while now, consumers have been looking for ways to lower their shopping costs, having to deal with increased expenses and/or smaller available incomes.
Since the introduction of private label goods, supermarkets …show more content…
Last year, frozen foods accounted for 52.3% of the total market volume (slightly down from 2013 by -1.6%) and almost half of the total value (49.5% of category turnover, down -0.9% from the year before). But, as major retailers spend more on research, development, and design for their PL offerings, the price gap between manufacturer's brands and private label tends to become smaller, thus depriving supermarkets and discounters of their biggest, foremost competitive advantage. The closing price gap has been a major concern for the industry and it's a trend that we continue to see, as private label ranges are becoming relatively more expensive (offering lower savings for …show more content…
In the past five years, there have been subcategories that grew at a much faster pace than the industry average, proving there's always opportunities to increase profits, for the companies who take the time to study the changes in consumer behaviour.
Vegetable based snacks are without a doubt the best performing division, both in market volume and total market value. In 2010, private label accounted for 56% of all vegetable based snacks sold in Britain. Last year, market penetration has reached 85.7% of the total volume, up by 29.7%. Value share has increased by 25.1%, with PL vegetable based snacks now accounting for 86% of total market value.
Salad products/herbs and seasoning are also doing great, having grown by 20.7% in total market volume and by 24.6% in market value, compared to 2010. With cooking shows aplenty and more people cooking at home today than there were five years ago, this trend will continue as strong in the future. Consumers are actively trying to improve their diet and cooking their own food is the best way to control their nutrition. Frozen herbs and seasoning offer the opportunity to quickly enhance every day meals, while providing convenience and a sense of wellness for the
A category comparison, complete with strengths, challenges, and best performing sectors
The relationship between British consumers and private label, is a long and lasting one. The UK private label sector has one of the highest market penetration percentages in Europe, reaching an overall market volume of 45.4% in 2014, right behind Switzerland (53%) and Spain (52%), with PL accounting for nearly half of all products sold in supermarkets and discount chains. This comes as no surprise since, for a while now, consumers have been looking for ways to lower their shopping costs, having to deal with increased expenses and/or smaller available incomes.
Since the introduction of private label goods, supermarkets …show more content…
Last year, frozen foods accounted for 52.3% of the total market volume (slightly down from 2013 by -1.6%) and almost half of the total value (49.5% of category turnover, down -0.9% from the year before). But, as major retailers spend more on research, development, and design for their PL offerings, the price gap between manufacturer's brands and private label tends to become smaller, thus depriving supermarkets and discounters of their biggest, foremost competitive advantage. The closing price gap has been a major concern for the industry and it's a trend that we continue to see, as private label ranges are becoming relatively more expensive (offering lower savings for …show more content…
In the past five years, there have been subcategories that grew at a much faster pace than the industry average, proving there's always opportunities to increase profits, for the companies who take the time to study the changes in consumer behaviour.
Vegetable based snacks are without a doubt the best performing division, both in market volume and total market value. In 2010, private label accounted for 56% of all vegetable based snacks sold in Britain. Last year, market penetration has reached 85.7% of the total volume, up by 29.7%. Value share has increased by 25.1%, with PL vegetable based snacks now accounting for 86% of total market value.
Salad products/herbs and seasoning are also doing great, having grown by 20.7% in total market volume and by 24.6% in market value, compared to 2010. With cooking shows aplenty and more people cooking at home today than there were five years ago, this trend will continue as strong in the future. Consumers are actively trying to improve their diet and cooking their own food is the best way to control their nutrition. Frozen herbs and seasoning offer the opportunity to quickly enhance every day meals, while providing convenience and a sense of wellness for the