Data Tracker: Consumers want private labels across brands for transparency

There is a growing demand for private labels across categories, the most among grocery shoppers looking for fresh, natural, organic produce. A report by Nielsen, The rise and rise again of private label By 2025, says that the share of online grocery spending could reach 20 per cent, presenting an enviable opportunity for growth to private labels in the segment. 

In India, the trend is beginning to gather force and is likely to see significant movement in the coming years as global e-commerce giants make a bigger play for the country’s grocery market.

Private labels are targeting healthier foods

• Busy consumers want the speed of quick-service restaurants, but they also want fresher, more healthful options. Retailers are expanding their private-label brands to include better-for-you options
• Consumers demand more transparency about the foods they eat and retailers are providing more nutritional information for private-label foods 

Changing trade structure is the biggest catalyst 

• The consolidation and expansion of modern retail chains has helped private label growth
• Hypermarkets, provide wider product ranges, and give private label products more visibility and space alongside big brands
• In addition, smaller stores, often with a focus on fresh and chilled, can offer new, innovative private-label products 

The online grocery experience in US, China 

• Online grocery is set to grow rapidly in the US and China as the battle between major players becomes even fiercer
• The US is a particular laggard in grocery e-commerce, but is now seeing online activity from the biggest American grocery retailers, including major acquisitions by Walmart
• Amazon isn't just disrupting the consumer product space.It's fragmenting the path to purchase and opening new opportunities for private labels, like with the Whole Foods acquisition

Premiumisation helps 

• Wealth polarisation exists in many countries: older shoppers are wealthier and younger shoppers have relatively less income. In many markets, private label offerings are becoming a local alternative to premium
• As retailers move into premium, they are positioning private labels much closer to multinational brands