a snapshot of global trends in private label

A SNAPSHOT OF GLOBAL TRENDS IN PRIVATE LABEL

PLMA WORKSHOP: WINNING WITH RETAILER PRODUCT DEVELOPMENT SYSTEMS

ALICE YU, RESEARCH ANALYST – AUGUST 2016

© Euromonitor International

2

Euromonitor International: Strategic Global Market ResearchA SNAPSHOT OF GLOBAL TRENDS IN PRIVATE LABEL

COMPETITIVE LANDSCAPE

CATEGORY DEVELOPMENT: PACKAGED FOOD

MARKET DRIVERS

KEY TRENDS

GROWING MARKETS FOR PRIVATE LABEL

KEY TAKEAWAYS


4

Private Label is worth 10% of Global Sales

=

US$350 billion

54% of Global Sales from the Western

European market



5

40

27

2017 16 16

7

0

5

10

15

20

25

30

35

40

45

Tissue &Hygiene

PackagedFood

Pet Care Home CareHot Drinks SoftDrinks

Beauty &Personal

Care

% V

alu

e Sh

are

of

Ind

ust

ry

2015 Value Share %

Western Europe

World

12

Western Europe: Private Label Highest Presence in Tissue and HygieneCOMPETITIVE LANDSCAPE

1412

6 6 5

3


6

2015 Value Sales US$

Packaged Food Soft Drinks

Tissue and Hygiene Beauty and Personal Care

Pet Care Home Care

Hot Drinks

141bn or 74%

11.7bn

12.3bn

6.6bn 5.5bn

5.3bn

4.7bn

But Private Label in Packaged Food Leads in Actual Value SalesCOMPETITIVE LANDSCAPE


7

0

5

10

15

20

25

30

35

40

45

Tissue &Hygiene

PackagedFood

Pet Care Home CareHot Drinks SoftDrinks

Beauty &Personal

Care

% V

alu

e Sh

are

of

Ind

ust

ry

2015 Value Share %

Australia

Western Europe

15

20

98

4 4 2

Australia: Private label highest presence in Packaged FoodCOMPETITIVE LANDSCAPE

40

27

17 16 16

7

20


8

2015 Value Sales US$

Packaged Food Tissue and Hygiene

Soft Drinks Beauty and Personal Care

Pet Care Home Care

Hot Drinks

6602 mn or 85%

254mn

n319mn

122mn 250mn

145mn

57mn

Private label in Packaged Food also leads in Actual Value SalesCOMPETITIVE LANDSCAPE



MARKET DRIVERS

KEY TRENDS


KEY TAKEAWAYS


10

Japan only Asian market among top 10

US leads in terms of actual private label sales

Strong growth recorded in Australia

Western Europe leads in private label presence in developed marketsCATEGORY DEVELOPMENT: PACKAGED FOOD


11

South Africa a substantial market

Argentina experiencing highest growth

Low presence in China, Brazil and Mexico

Varied development of private label in emerging marketsCATEGORY DEVELOPMENT: PACKAGED FOOD


12

Dairy largest in actual private label sales

Ready meals benefit from retailer innovations

Processed fruit and vegetables a mature category

Opportunities for growth in less developed food categoriesCATEGORY DEVELOPMENT: PACKAGED FOOD

Dairy

Rice, pasta and

noodles

Confectionery

Processed fruit and vegetables

Ready meals

Oils and fats

Processed meat and seafood

Sweet and savoury snacks

Biscuits and snack bars

Sauces, dressings

and condime

Baked goods

Ice cream

and frozen

desserts0

1

2

3

4

5

6

7

0 5 10 15 20 25 30

% C

AG

R 2

010-2

01

5

% share in packaged food 2015

World: Private Label Value Share 2015 and Growth 2010-2015 by Category

Notes: Bubble size shows actual private label sales in category in 2015. Range displayed US$7,052-61,348 million.



MARKET DRIVERS

KEY TRENDS


KEY TAKEAWAYS


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• Economic PerformanceMacro Factors

• Retail InfrastructureDistribution

• Consumer DemandConsumer

Manufacturer

What Drives Demand in the Private Label Market?MARKET DRIVERS

• Product development and marketing


15

-2%

0%

2%

4%

6%

8%

10%

12%

2010 2011 2012 2013 2014 2015

Re

tail

Va

lue

Gro

wth

(y

-o-y

)

Packaged Food y-o-y retail value growth (2010-2015)

France Spain Netherlands Italy Germany

Economy: Recovering Economies Driving Pressure to Innovate

MARKET DRIVERS


16

0

10

20

30

40

50

60

70

80

90

100

Val

ue

shar

e %

Modern Grocery Share 2015

Retail Infrastructure: The Shift to Modern GroceryMARKET DRIVERS

Modern Grocery: aggregation of convenience stores, discounters, forecourt retailers, hypermarkets, supermarkets



MARKET DRIVERS

KEY TRENDS

TISSUE AND HYGIENE

PACKAGED FOOD AND DRINK


KEY TAKEAWAYS


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Trends within Tissue and Hygiene: Different Ways to PremiumiseKEY TRENDS

Adding Value Packaging Claims

Multi-tiered pricing

Great Value Range Wal-Mart, Mexico

Home Signature Collection Jewel-Osco, Chicago, USA Equate Regular Pantiliners Wal-Mart, USA


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Trends within Tissue and Hygiene: Balancing Price and QualityKEY TRENDS

Sustainability Adopting proven technology

Lidl - adoption of drylock technology in nappiesSofidel, Italy – Zero Tubo toilet paper


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•Price Segmentation

•Organic & Fair Trade

•Free From

•Provenance

•Premiumisation

Trends within Packaged Food and DrinksKEY TRENDS


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17%

83%

Value Share Global 2015

Private Label Brands

Wider selection of organic private label in supermarkets

Organic more accessible to consumers

Segmentation by Lifestyle: Organic ProductsKEY TRENDS

Topvalu GreenEye Organic Range


22

71%

28%

0.15% 1%

Global Value Share Split of Food Intolerance Products 2015

Lactose Free

Gluten Free

Diabetic Free

Other HW

Segmentation by Lifestyle: ‘Free From’ Products a Growing MarketKEY TRENDS


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Provenance Appeals Both to Patriotism and Local Sourcing KEY TRENDS

Intermarché Portugal launches new

PL line with locally sourced products


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Premiumisation: Changing Private Label StereotypesKEY TRENDS


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Premiumisation: Private Label leading innovationKEY TRENDS

Kin no Syokupan (Golden Bread) Seven & I Holdings

National Brand copycatYamazaki Baking Co Ltd

Premium Loaf Bread Japan



MARKET DRIVERS

KEY TRENDS


KEY TAKEAWAYS


27

BABY FOOD – Trust

CONFECTIONERY – Impulse

35% value growth over 5 years







Categories that Promise Rewards – Unsaturated Markets


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Targeting Countries: Discounters and Growth Prospects


Shifting to premium private label in saturated markets

Germany to see strong growth in specific categories

Lidl to enter US market by 2018


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Waitrose (UK) sells its private labels in 43 markets

Portuguese retailer Continente kicked off exports of its private label in 2013. First

destination: Thailand

UK frozen foods chain Iceland exports its products to the Middle East and South

Africa since 2012

Carrefour Romania sells its private label in Carrefour stores in Italy and Spain

New Frontiers: Exports of Private LabelGROWING MARKETS FOR PRIVATE LABEL


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Collaboration between brands and retailers to offer:

competitive premium private label

an exclusive product not available elsewhere

Examples:

UK grocery retail chain Waitrose and organic range Duchy Originals

Japan convenience store chain Natural Lawson and company Bel Japon releasing a private label chilled dessert range (Kiri brand x Natural Lawson)

Blurring of the Distinction Between Private Label and BrandsGROWING MARKETS FOR PRIVATE LABEL

Duchy Originals from Waitrose logo



MARKET DRIVERS

KEY TRENDS


KEY TAKEAWAYS


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More sophisticated private label segmentation

Higher potential in categories where brand image matters

A number of markets hold growth potential

Key TakeawaysKEY TAKEAWAYS

THANK YOU FOR LISTENINGAlice Yu

Research Analyst, Australasia

[email protected]

https://au.linkedin.com/in/alice-yu-18042775

mailto:[email protected]

a snapshot of global trends in private label

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