Private Label Food and Beverages Market in APAC 2017-2021
About Private Label Food and Beverages
Private label products are manufactured or produced by one company and are offered under another company's brand name. These products are manufactured by third-parties or companies that specialize in the product but do not have any individual brand. They are usually cost-effective alternatives to the national or international branded products. Private label is available for a wide range of products like food and beverages, cosmetics, textiles, and web hosting.
Technavio’s analysts forecast the private label food and beverages market in APAC to grow at a CAGR of 10.53% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the private label food and beverages market in APAC for 2017-2021. To calculate the market size, the report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Private Label Food and Beverages Market in APAC 2017-2021
Technavio recognizes the following companies as the key players in the private label food and beverages market in APAC: AEON, Seven & i Holdings, Wal-Mart Stores, WESFARMERS, and Woolworths.
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is growing digitization of private label. With the growing competition, retailers are increasingly taking initiatives and efforts to promote their products by using modern technology and digitization. The internet is an ideal platform to promote, market, and sell their products. Thus, business hubs like Amazon and other similar portals are providing platforms where customers are providing platforms to purchase branded products that are not just private label products.”
According to the report, one driver in the market is affordable prices of private label products. Private label products are priced lower than their branded counterparts. These products are manufactured by outsourcing or by third-party manufacturers. In addition, the cost of marketing incurred on these products is minimal. Thus, the overall cost of private label products is lesser than branded products. Prices of national brands are usually 25%-30% more than the private labeled food products. The cost of material handling and logistics is also minimum in private label food and beverages. Consumers are generally price sensitive for food and beverage products that are available in the market.
Further, the report states that one challenge in the market is presence of brand-conscious consumers. Well-established brands have recognized markets and reputations as they offer their products with constant quality and spend heavily on the marketing of their products. Consumers can be divided into two segments: one who look for brand names and quality and others who are price conscious. So, the first type of customers usually has fixed choices, and they do not to take the risk by choosing private label products. Further, national brands spend a substantial amount of revenue on marketing and advertisements. Thus, the awareness about these products is more among consumers when compared with private label brands.
AEON, Seven & i Holdings, Wal-Mart Stores, WESFARMERS, and Woolworths.