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Home > Latest News > Consumers choose brands over own-labels

Consumers choose brands over own-labels

Despite the recession, customers are still choosing big brand groceries over supermarket own-labels according to data from Nielsen.

Due to the current economic climate, the Private Labels Manufacturers Association had predicted that own-label products would have the majority market share by the end of 2009. This was certainly on course at the beginning of the year when own-labels had a value share of 48.2% and a 52.7% share by volume. However, promotions on branded products have been credited with swaying customers to purchase them over own-label goods

This information has been gained from Nielsen Scantrack data and is based on customers who have a choice between budget, standard and premium own-label products or branded goods. It covers the 52 weeks up until the end of May 2009.

During this period, sales of branded products increased by 9% on the previous period. Conversely sales of healthy own-label products fell by 7% and their premium ranges grew by only 1%. Standard own-label products were also lagging behind the branded goods with a growth rate of 6%. However, the largest increase in sales was budget own-label products which saw an increase of 25% year on year although it had a smaller base to begin with than the others.

Mike Watkins, senior retail services manager for Nielsen commented, “There is more private label being bought by volume but a good deal of it is being bought at lower price points.”

He continued, “This goes back to moves like Tesco's discounter range and to the discounters themselves. Discounters now have a 6% market share and a substantial majority of their goods and private labels.”

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