Own-labels maintain market popularity

04th December 2012 - Fine Cut

Research reveals that cash-conscious consumers continue to favour supermarket own-label options over branded products, foodmanufacture.co.uk reports. 

Analysis by market researcher Kantar Worldpanel found that the own-label sector accounts for 45 per cent of the UK's total grocery sales and Kantar predicts this will rise further due to a recent change in opinion.

The researcher said that perception of own-labels as 'cheap' and low quality are out-dated, with many shoppers seeing them as value for money, if not premium items.

Communications director Ed Garner explained further: "Over time we will see unprecedented growth in this market. It is no coincidence that retailers have launched more own-label products.

"Own-label was once something you bought if you couldn't afford to buy a brand, but with Tesco's 'Finest' and Sainsbury's 'Taste the Difference' ranges, these products are now seen as premium by consumers."

This rise will also occur due to the supermarkets' promotion of their own label brands and the de-listing of some well-known ones. With the 'Big Four' - Tesco, Sainsbury's, ASDA and Morrisons - emphasising their competitive price strategies, Garner told fruitnet.com, one of the only differentiators 'for retailers to benefit from is branding of own-label ranges'. 

The UK's own-label market is the biggest in the world. Despite the recession, both economy and premium own-label ranges have been growing at the same rates. Consumers' desire for budget shopping is further evidenced by the fact that Lidl and Aldi have recorded 20 per cent growth year-on-year compared with 'luxury retailer' Waitrose, which saw just eight per cent.

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