According to new analysis by International Supermarket News (ISN), the market share of private label goods is rapidly approaching 60%, driven by changing consumer habits, competitive pricing and the increasing presence of discounters, it says. UK consumers are increasingly turning to such lines, which offer a cheaper alternative to branded products without sacrificing quality.
As this trend continues, traditional retailers are being forced to adapt by expanding their ranges and improving quality. The future of the UK grocery market is increasingly private, with these products set to play an even larger role in shaping consumer choices.
ISN suggests that with own label products growing rapidly in traditional retailers, the UK grocery market is expected to reach a 60% share soon. This figure includes the contribution from discounters, whose ranges have been instrumental in shifting consumer perceptions and driving the market forward.
The implications for the wider grocery industry are profound. Own label lines are no longer seen as budget alternatives but as serious competitors to branded goods. Retailers are investing more in innovation, product development and sustainability within their ranges, ensuring they meet the evolving needs of consumers.
Such lines offer significant benefits for retailers as well. “They represent a higher profit margin compared to branded products and by cutting out the middleman, stores can offer competitive prices while keeping a larger share of the revenue. Additionally, they give retailers greater control over product quality, sourcing and branding, allowing them to tailor products to specific consumer needs,” detail from the analysis explains.
Kaual Patel, who runs a succesful Nisa-supplied store in Torridon, London, says that when Co-op became involved with the group, it was great news for him, allowing him access to their own label ranges. ”Own label products are probably the reason why I’ve always stuck with Nisa, and the Co-op deal was obviously just the icing on the cake. That was a game changer.
”I think it’s fantastic and I think it’s a good fit. Obviously, you’ve got the Irresistible range, then the Everyday range, and then there’s the Value range too, so they sort of tick all the boxes.”
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