MDD: Opportunities for beverages in Europe | Market research report
Economic instability remains the main factor of prosperity for private label. Other variables gain more influence, but have a secondary impact
Financial hardship caused by the COVID-19 pandemic has forced consumers to rethink their spending. The value for money embodied by the private label quickly became a priority. The evolution of retailers’ own brands towards modern and reasonable quality products has allowed people to consume them without sacrificing too much to their habits.
Consumers change their perception of private label, increase trust and loyalty
Modern consumers more often make a conscious choice when buying private label. They choose to pay for the product and the experience, with chain retailers building trust over time and improving consumer perception of both. In addition to a value proposition, private label should satisfy all consumer demands, undermining the USP of major brands through an equivalent or superior taste, packaging and retail experience.
The continued expansion of modern retailers in Eastern Europe, the popularity of discounters and the dynamism of e-commerce support the strong momentum of private label
Eastern Europe is seeing continued penetration by modern food retailers, with discounters gaining more and more traction. This becomes a crucial factor for the expansion of private label and its perception by consumers. The new reality of channels with instant e-commerce and dark stores is putting new players on the private label map. The strong presence of private label options in these growth channels will ensure private label prosperity in 2022.
Private label entry into new niche categories, emphasis on design, health, wellness and sustainability trends are driving private label and changing its appeal to consumers
The way consumers select their products is changing as part of modern lifestyle trends, and private label is no exception. It’s not just about economic appeal, and retailers are now entering very small but fashionable beverage categories to fill the niche, build recognition and trust. Own brands now respond to the need for healthy and sustainable choices, which allow them to play in ranges with higher added value, and low-income consumers to enter the premium segment.