There is a new retail revolution underway, and it’s going to affect the food industry across the globe over the next five years in ways we have never seen before. We’re talking about the development of private-label products and the new challenges that this will present for brands and manufacturers across the globe, as retailers develop and market their own products rather multinational name brands to meet changing consumer needs.
The value for money continuum—from premium though to budget private label—is being stretched, and retailers are innovating quickly to meet shopper expectations, which has strategic implications for brands.
The largest markets for private-label products are found primarily in the more mature European retail markets. Comparatively, private-label still has much room for growth, especially in North America, where penetration is still relatively low.