Global Private Label Food and Beverages Market 2017-2021
About Private Label Food and Beverages
Private labels products are manufactured by a company, which are offered under another company's brand name. Private label products are manufactured by third-parties or companies that specialize in the product but do not own a brand of their own. These are usually cost-effective alternatives to the international or national branded products. Private label is available for a wide range of products like cosmetics, food and beverage, textiles, web hosting, and more.
Technavio’s analysts forecast the global private label food and beverages market to grow at a CAGR of 7.26% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global private label food and beverages market for 2017-2021. To calculate the market size, the report considers the retail selling price as the average selling price of the product.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Private Label Food and Beverages Market 2017-2021
Technavio recognizes the following companies as the key players in the global private label food and beverages market: ALDI, Costco, Trader Joe's, Walmart Stores, and Wegmans Food Markets
Other Prominent Vendors in the market are: A&P, Ahold USA, Carrefour, Delhaize Group, Dollar General, EDEKA, Family Dollar, Giant Eagle, H-E-B, Hy-Vee, Kroger, Loblaw Companies, Publix, Sobeys, SuperValu, Target, TESCO, Whole Foods, and Winn Dixie.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Growing digitization of private label. With the increasing competition, retailers are taking greater initiatives and efforts to promote their products by using modern technology and digitization. The Internet has become an ideal platform to promote and sell their products. Thus, business hubs like Amazon and other similar portals are providing platforms where customers are providing platforms to purchase brand products that are not just private label products. Thus, private label business is widening to cater to the needs of online consumers.”
According to the report, one of the major drivers for this market is Affordable price of private label products. Private label products are less expensive than their branded counterparts. These products are manufactured by outsourcing or by third party manufacturers. In addition, the marketing costs incurred on these products range from zero to minimal. Thus, the overall costs of private label products are lesser than other products. The price of national brands is usually 25%-30% more than the private labeled food products. The cost of logistics and material handling is also minimal in private label food and beverages. Consumers are price sensitive for most of the food and beverage products that are available in the market.
Further, the report states that one of the major factors hindering the growth of this market is Threat from national brands. The well-established brands have established market and reputation as they offer their products with constant quality and spend extensively on the marketing of their products. Consumers can be divided into two segments: one who look for brand name and quality and others who are price conscious. So, the first type of customers usually has fixed choices and are not very much willing to take the risk.
ALDI, Costco, Trader Joe's, Walmart Stores, Wegmans Food Markets, A&P, Ahold USA, Carrefour, Delhaize Group, Dollar General, EDEKA, Family Dollar, Giant Eagle, H-E-B, Hy-Vee, Kroger, Loblaw Companies, Publix, Sobeys, SuperValu, Target, TESCO, Whole Foods, and Winn Dixie.
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