Emma Bedford
Senior Team Lead Food & Agriculture
Private label market in the UK - statistics & facts
Private label products, otherwise known as own-brand or store-brand products, are goods that are manufactured by a third-party company and sold under a specific retailer's name. Private label products compete directly with branded products and are generally more affordable for the consumer. Since the period of high inflation which pushed grocery prices up at record speed, private label products have become more popular among shoppers in the United Kingdom.
As inflation pressures start to subside in 2024, it is yet to be seen if the popularity of private label products will stick with consumers.
Cost-cutting shopping behavior
When surveyed, over one-third of UK respondents stated that they mostly purchased store-brand products in an effort to save on food costs. This was the third most popular way to combat rising food prices, after choosing meals based on what consumers already had at home and dedicating more time to planning food shopping. Even if price was not an issue, just over 70 percent of UK survey respondents would stick with own-label products that they have been buying. For those who prefer branded products, the main reason that they are deterred from buying own-label products was that they don’t taste as good as their branded counterparts.Popular private label categories
From toiletries to dairy products, private label alternatives are available across almost all supermarket aisles in the UK. Consumers were most interested in own-brand medicines, such as paracetamol and aspirin, out of all household product categories: Over three-quarters of survey respondents generally purchased private label medicine. In comparison, just 12 percent said the same for toothpaste. In the beverage aisle, own-brand juices and smoothies were the most popular.Types of private label
There are also some distinctions to be made within the supermarket's own-brand categories. Many supermarket brands in the UK can be broken down into standard, premium, and value. Own-label standard holds the highest market share of all three in the United Kingdom. However, own-label value has witnessed the highest level of growth most recently at almost 50 percent in the 16-week period ending on April 16, 2023.As inflation pressures start to subside in 2024, it is yet to be seen if the popularity of private label products will stick with consumers.
