ACNielsen has released a new report saying that private label products continue to grow market share worldwide.
The report, “The Power of Private Label,” is based on data collected from 14 product areas containing 80 categories in 38 markets.
“Private Label goods comprise 17% of total value sales for the 12 months ending the first quarter of 2005, up from the 15% level found in a similar ACNielsen report published in 2003. In terms of growth, Private Label more than doubled the growth rate of manufacturer brands, 5% to 2%. In fact, in more than two-thirds of the markets studied, Private Label value sales grew faster than manufacturer brand counterparts.”
Europe continued its traditional dominance in terms of market share of Private Label value sales, with a 23% share across 17 markets and a growth rate of 4%. The Emerging Markets - Croatia, Czech Republic, Hungary, Slovakia and South Africa - collectively saw the fastest Private Label growth rate of 11%, though achieved from a much smaller base. Latin America and Asia Pacific have small Private Label markets in terms of share but did not achieve the same double-digit growth rates as in the Emerging Markets. North America maintained both a high share (16%) and also achieved a significant growth rate (7%).
The study also revealed that nearly everyone buys Private Label goods. In fact, 100% of households in two-thirds of the markets reviewed had purchased Private Label goods during the past year, and even the “lowest” penetration level was a still strong 77% (Singapore).
The report, “The Power of Private Label,” is based on data collected from 14 product areas containing 80 categories in 38 markets.
“Private Label goods comprise 17% of total value sales for the 12 months ending the first quarter of 2005, up from the 15% level found in a similar ACNielsen report published in 2003. In terms of growth, Private Label more than doubled the growth rate of manufacturer brands, 5% to 2%. In fact, in more than two-thirds of the markets studied, Private Label value sales grew faster than manufacturer brand counterparts.”
Europe continued its traditional dominance in terms of market share of Private Label value sales, with a 23% share across 17 markets and a growth rate of 4%. The Emerging Markets - Croatia, Czech Republic, Hungary, Slovakia and South Africa - collectively saw the fastest Private Label growth rate of 11%, though achieved from a much smaller base. Latin America and Asia Pacific have small Private Label markets in terms of share but did not achieve the same double-digit growth rates as in the Emerging Markets. North America maintained both a high share (16%) and also achieved a significant growth rate (7%).
The study also revealed that nearly everyone buys Private Label goods. In fact, 100% of households in two-thirds of the markets reviewed had purchased Private Label goods during the past year, and even the “lowest” penetration level was a still strong 77% (Singapore).
- KC's View:
