Channel shifts and recent shock to economies globally will shape the way consumers perceive private label within drinks. Changing consumption patterns will allow retailers to adapt private label in niche categories and explore beyond the “economy” tag in others. Eastern Europe will unleash the potential of retailers’ own brands, mimicking the beaten track of Western countries and untapping specific regional opportunities. Sizeable competition from private label is unescapable.
This report comes in PPT.
Financial hardship caused by the COVID-19 pandemic forced consumers to re-think their spending. Value for money embodied in private label quickly became a priority. The evolution of retailers’ own brands to modern and reasonable quality products allowed people to consume them with no big sacrifices to their habits.
Modern consumers more often make a conscious choice when purchasing private label. They choose to pay for the product and experience, with chained retailers building trust over time and elevating the consumers’ perception of both. Apart from a value proposition, private label is expected to satisfy all consumers’ demands, undermining the USP of major brands through equivalent or superior taste, packaging and retailing experience.
Eastern Europe witnesses ongoing penetration of modern grocery retailers with discounters gaining more weight. That becomes a crucial factor for private label expansion and its perception among consumers. Changed channel reality with instant e-commerce and dark stores put new players on the private label map. The strong presence of private label options in these rising channels will ensure own brands’ prosperity in 2022.
The way consumers select their products changes within modern lifestyle trends, and private label is no exception. It is not solely about economy appeal, and retailers now enter very small, but trendy beverage categories to fill the niche, building recognition and trust. Own brands now address the need for healthy and sustainable choices, which allow them to play in higher-value ranges, and low-income consumers to enter the premium segment.
This is the aggregation of the following categories; Carbonates, Fruit/vegetable juice, Bottled water, Functional drinks, Concentrates, RTD tea, RTD coffee and Asian speciality drinks.
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