Monday, April 25, 2011

25% market share of Private Labels all set to rise.

"The New Fred Meyer on Interstate on Lomb...

The global market share of private label food products is expected to double, from its current 25% to 50%, by 2025, according to a new report from the Food and Agri Research division of Rabobank, an international financial services provider.

While recent statistics have pointed to a halt in the rapid growth of private label that was seen during the worst of the recession, and brands overall will recoup some of the share lost to private label, the historical trends show that they never totally recoup those losses, according to the report.

The lingering effects of the recession on consumers will drive private label expansion across the globe for years to come, say the analysts. Those effects include consumers' raised awareness of private label (aided by the introduction of "premium" private label brands), which has in turn spurred expansion of "hard discount" retail formats (warehouse clubs, dollar stores, "everyday low price" mass merchants and supermarkets) and increased competitive pressure on service-oriented supermarkets for lower price points and non-price differentiators from discount food retailers.

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