Own label now accounts for 55% of value sales in the total UK grocery market
The pressure on household budgets driven by continuing high inflation and increasing interest rates is driving shoppers to switch more from brands to own label. Kantar data from w/e 16th April as reported in The Grocer magazine, reveal that own label now has a share of 55% of value and 63% of volume of total UK grocery.
Total grocery volume sales have fallen 3% year on year, with brands down 8%. Within private label itself, the only tier to show any growth in volume over the year is value own label – up 25%, while standard own label volumes dropped 2% and premium own label declined by 4%.
While value own labels have grown strongly, they account for only 3% of total UK grocery (and premium own label for just a little more at 4%). Standard own label ranges are more than 10 times as significant, with 45% value share, matching that of branded food and drink.
Most UK retailers have increased their range of value own label products over the last year, with Asda’s and Morrisons’ portfolios increasing by more than 30%. Tesco slightly reduced their numbers but still offer more value products than their competitors. Meanwhile, standard own label sku numbers have reduced across UK multiples as they focus more on their value proposition.
Now more than ever brands need to demonstrate they are responding to unmet shopper needs with a compelling proposition at an attractive price point. Inflation is beginning to ease now that input prices have dropped, but a tough economic environment will continue for some time as the effect of higher interest rates begin to bite. Time for brands to show how they make an affordable difference.