Sales of own-label products at British supermarkets have grown at double the speed of branded goods in 2023, data from market researchers NIQ has shown, as customers adjust to soaring prices.
Food prices are up more than 19% over the last year, outpacing the broader inflation rate across the whole economy and adding strain to household budgets already stretched by high energy bills and other price increases.
The latest data showed value sales of own-label goods grew by 14.1% compared to branded product growth of 7.1%. In the last four weeks, the volume share of own-label sales rose to 63.3% in the fast-moving consumer goods' category, versus 62.1% in 2022.
Food retailers have said they expect prices to rise in 2023 overall but with the rate of inflation declining through the year.
“Inflation has been a significant drag on shopper spend, so this year, incremental sales are reliant on a short-term boost from well-activated events rather than regular promotional activity," commented Mike Watkins, NIQ’s UK Head of Retailer & Business Insight.
Looking at Europe now private labels make up 38% of total FMCG value sales in the EU as shoppers continue to look for deals on everyday groceries. A total of €229 bn (£199 bn) of private labels were made. According to Circana’s latest bi-annual FMCG Demand Signals report, which analysed data from European retailers in UK, France, Italy, Germany, Spain, and Netherlands, showed a strong Q4 2022 market performance despite prices of private labels rising higher than national brands.
Source: ESM, NIQ, Circa
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