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Brand Loyalty in Food - Ireland - December 2015

Brand Loyalty in Food - Ireland - December 2015

“When looking at the Irish market as a whole, consumers show a slightly stronger preference towards brands when it comes to indulgence items such as chocolate, spreads and alcohol. With staple foods (eg fruit and vegetables) however, consumers appear to have no preference or lean more towards own-label.”

– Emma McGeown, Research Analyst

This report answers the following questions:

What are the market challenges for brands and own-label?
How is the own-label and branded market expected to perform in 2015?
What are the enticements for buying own-label over branded products?
What are the enticements for buying branded over own-label products?


INTRODUCTION
Issues covered in this report
EXECUTIVE SUMMARY
The market
Figure 1: Estimated total grocery retail sales vs own-label sales, IoI, 2010-20
The market
Decreasing food prices could see demand for brands increase
Discounters’ expansion in Ireland offers scope for own-label
Irish consumers’ financial situation bodes well for brands
Younger consumers show a stronger preference towards own-label
Brands dominate the food market
Companies, brands and innovations
The consumer
Strong preference towards brands in indulgent categories
Figure 2: The food and drink products that consumers would typically purchase, by branded and ownbranded
food products, NI, November 2015
Figure 3: The food and drink products that consumers would typically purchase, by branded and ownbranded
food products, RoI, November 2015
Special offers are the key driver for own-label purchases
Figure 4: Factors (other than price) that are likely to encourage consumers to buy an own-label product
instead of a branded product, by demographics, NI and RoI, November 2015
Special offers also a key influence in branded products
Figure 5: Factors (other than price) that are likely to encourage consumers to buy a branded product
instead of an own-label product, NI and RoI, November 2015
Three quarters happy to try own-label
Figure 6: Agreement with statements relating to brand vs own-label food and drink, NI and RoI,
November 2015
What we think
ISSUES AND INSIGHTS
What are the market challenges for brands and own-label?
The facts
The implications
How is the own-label and branded market expected to perform in 2015?
The facts
The implications
What are the enticements for buying own-label over branded products?
The facts
The implications
What are the enticements for buying branded over own-label products?
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Own-label sales continue to grow their share of the market
Decreasing food prices could see demand for brands increase
Discounters’ expansion in Ireland offers scope for own-label
Younger consumers show a stronger preference towards own-label
Brands dominate the food market
The own-label transformation
MARKET SIZE AND FORECAST
Own-label sales continue to grow their share of the market
Figure 7: Estimated total grocery retail sales vs own-label sales, IoI, 2010-20
Own-label sales see stronger growth in RoI between 2014 and 2015
Figure 8: Estimated total retail sales of own-label groceries, IoI, NI and RoI, 2010-20
Branded sales growth is better in NI
Figure 9: Estimated total retail sales of branded groceries, IoI, NI and RoI, 2010-20
MARKET DRIVERS
Decreasing food prices could see demand for brands increase
Figure 10: Consumer price index for all food, RoI, 2010 to 2015*
Figure 11: Consumer price index for all food, alcoholic beverages and tobacco, NI, 2010-15*
Discounters’ expansion in Ireland offers scope for own-label
Figure 12: Consumer agreement that they are shopping in discounters such as Lidl or Aldi more or less
often, RoI, October 2015
Irish consumers’ financial situation bodes well for brands
Figure 13: How Irish consumers rated their current financial situation, NI and RoI, November 2015
Younger consumers show a stronger preference towards own-label
Figure 14: Percentage of consumers who have stated that the majority of their shopping is either ownlabel
or branded food products, by age, Ireland, 2015
Brands dominate innovation
Figure 15: Total food launches, by branded and own-label, 2008-15, UK & Ireland
Own-label more popular for meat and prepared meals
Figure 16: Total food launches for prepared meals, meat products, cake, pastries & sweet goods and
sweet biscuits/cookies, by branded and own-label, 2015*, UK & Ireland
The own-label transformation
COMPANIES AND INNOVATIONS – WHAT YOU NEED TO KNOW
Branded food launches dominates the Irish market
M&S take over in NPD
Sweet biscuits take the lead in branded food launches
Mondelēz dominates the branded launches
WHO’S INNOVATING?
Prepared meals continue to dominate own-label launches
Figure 17: Own-label food launches, UK and Ireland, December 2010-15
Cakes and pastries
Premium positioning drives own-label launches
Figure 18: Premium and economy own-label launches, UK and Ireland, December 2015
M&S take over in NPD
Figure 19: Share of own-label launches in the UK and Irish food market, December 2010-15
Tesco launches ‘Try before you buy’
Sweet biscuits take the lead in branded food launches
Figure 20: Share of branded food launches, UK and Ireland, December 2010-15
Mondelēz takes over Nestlé in NPD
Figure 21: Share of branded launches in the UK and Irish food market, December 2010-15
Branded products turn towards personalisation
THE CONSUMER – WHAT YOU NEED TO KNOW
Strong preference towards brands in indulgent categories whereas own-label is preferable
for staple goods
Special offers are the key driver for own-label purchases
NI consumers more likely to be swayed by taste with brands
Three quarters happy to try own-label
THE CONSUMER – USAGE OF OWN-LABEL AND BRANDS
Branded products are most typically used in IoI
Figure 22: The food and drink products that consumers would typically purchase, by branded and ownbranded
food products, NI and RoI, November 2015
Brands popular when indulging in a treat
Strong preference towards alcohol brands
Figure 23: Consumers who would typically purchase brands when buying alcohol, by occupation, NI
and RoI, November 2015
Over a quarter prefer own-label fruit and vegetables
Figure 24: Consumers who would typically purchase own-label when fruit and vegetables, by age of
children, NI and RoI, November 2015
Branded cheese important to Irish consumers
Figure 25: If consumers prefer branded or own-label when buying cheese, by social class, NI and RoI,
November 2015
Strong brand loyalty in butters and spreads
Irish consumers show a stronger reference towards branded bread
Figure 26: Consumers who would typically purchase brands when buying bread, by occupation, NI and
RoI, November 2015
Cereal brands more popular in NI
Figure 27: If consumers prefer branded or own-label when buying cereal, by gender and age, NI and
RoI, November 2015
THE CONSUMER – ENTICEMENTS FOR BUYING OWN-LABEL FOOD
Special offers are the key driver for own-label purchases
Figure 28: Factors (other than price) that are likely to encourage consumers to buy an own-label
product instead of a branded product, by demographics, NI and RoI, November 2015
BOGOF appeals to younger consumers
Figure 29: Consumers stating that on special offer (eg 2-for-1) is a factor (other than price) that is likely
to encourage them to buy an own-label product instead of a branded product, by age, NI and RoI,
November 2015
Younger consumers prefer the taste of own-label
Figure 30: Consumers stating that other than price, “if the taste is better than the branded version they
are likely to buy an own-label product instead of a branded product”, by gender age, NI and RoI,
November 2015
Recommendations by friends have Irish women buying own-label
Figure 31: Consumers stating that a recommendation from friends for own-label products is a factor
(other than price) that is likely to encourage them to buy an own-label product instead of a branded, by
gender, NI and RoI, November 2015
THE CONSUMER – ENTICEMENTS FOR BUYING BRANDED FOOD
Special offers a key influence
Figure 32: Factors (other than price) that are likely to encourage consumers to buy a branded product
instead of an own-label product, NI and RoI, November 2015
Promotional offers encourage branded good use
Figure 33: Consumers who claim that being on special offer (eg 2-for-1) is likely to encourage
consumers to buy a branded product instead of an own-label product, by age and social class, NI and
RoI, November 2015
NI consumers more likely to be swayed by taste
Figure 34: Consumers who claim preferring the taste of branded over own-label food is likely to
encourage consumers to buy a branded product instead of an own-label product, by gender, NI and
RoI, November 2015
A third of consumers show strong brand loyalty
Figure 35: Consumers who claim having used the same brand for years is likely to encourage
consumers to buy a branded product instead of an own-label product, by age, NI and RoI, November
2015
THE CONSUMER – ATTITUDES TOWARDS OWN-LABEL AND BRANDS
Three quarters happy to try own-label
Figure 36: Agreement with statements relating to brand vs own-label food and drink, NI and RoI,
November 2015
Younger consumers more likely to be happy to try own-label variants
Figure 37: Agreement with the statement ‘I'm happy to try an own-label product that looks just like the
leading brand’, by age, NI and RoI, November 2015
RoI consumers more likely to choose a retailer based on their own-brand offering
Figure 38: Agreement with the statement ‘I choose to shop at specific retailers because of their ownlabel
products’, by gender and age, NI and RoI, November 2015
Two thirds want more information on food producers
Consumers apprehensive about giving own-label goods as gifts
Figure 39: Agreement with selected statements relating to brand vs own-label food and drink, NI and
RoI, November 2015
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Definition
Data sources
Abbreviations
APPENDIX – THE CONSUMER
NI Toluna data
Figure 40: If consumers prefer branded or own-label when buying fruit and vegetables, by
demographics, NI, November 2015
Figure 41: If consumers prefer branded or own-label when buying bread, by demographics, NI,
November 2015
Figure 42: If consumers prefer branded or own-label when buying meat, fish or poultry goods, by
demographics, NI, November 2015
Figure 43: If consumers prefer branded or own-label when buying cheese, by demographics, NI,
November 2015
Figure 44: If consumers prefer branded or own-label when buying butter or spreads, by demographics,
NI, November 2015
Figure 45: If consumers prefer branded or own-label when buying frozen foods (eg chips, pizza), by
demographics, NI, November 2015
Figure 46: If consumers prefer branded or own-label when buying chilled or frozen ready meals, by
demographics, NI, November 2015
Figure 47: If consumers prefer branded or own-label when buying tinned/jars of goods, by
demographics, NI, November 2015
Figure 48: If consumers prefer branded or own-label when buying crisps and nut snacks, by
demographics, NI, November 2015
Figure 49: If consumers prefer branded or own-label when buying sweets and confectionary, by
demographics, NI, November 2015
Figure 50: If consumers prefer branded or own-label when buying cereals, by demographics, NI,
November 2015
Figure 51: If consumers prefer branded or own-label when buying biscuits, by demographics, NI,
November 2015
Figure 52: If consumers prefer branded or own-label when buying cakes, buns, pastries, by
demographics, NI, November 2015
Figure 53: If consumers prefer branded or own-label when buying cupboard staples (eg sugar, flour),
by demographics, NI, November 2015
Figure 54: If consumers prefer branded or own-label when buying soft drinks/juices, by demographics,
NI, November 2015
Figure 55: If consumers prefer branded or own-label when buying alcohol, by demographics, NI,
November 2015
Figure 56: Factors (other than price) that are likely to encourage consumers to buy an own-label
product instead of a branded product, by demographics, NI, November 2015
Figure 57: Factors (other than price) that are likely to encourage consumers to buy an own-label
product instead of a branded product, by demographics, NI, November 2015 (continued)
Figure 58: Factors (other than price) that are likely to encourage consumers to buy an own-label
product instead of a branded product, by demographics, NI, November 2015 (continued)
Figure 59: Factors (other than price) that are likely to encourage consumers to buy a branded product
instead of an own-label product, by demographics, NI, November 2015
Figure 60: Factors (other than price) that are likely to encourage consumers to buy a branded product
instead of an own-label product, by demographics, NI, November 2015 (continued)
Figure 61: Factors (other than price) that are likely to encourage consumers to buy a branded product
instead of an own-label product, by demographics, NI, November 2015 (continued)
Figure 62: Agreement with the statement ‘I'm happy to try an own-label product that looks just like the
leading brand’, by demographics, NI, November 2015
Figure 63: Agreement with the statement ‘If I'm buying something as a treat (eg chocolate, ice cream), I
tend to buy brands rather than own-label’, by demographics, NI, November 2015
Figure 64: Agreement with the statement ‘I choose to shop at specific retailers because of their ownlabel
products’, by demographics, NI, November 2015
Figure 65: Agreement with the statement ‘I would not feel comfortable giving an own-label product as a
gift (eg chocolate)’, by demographics, NI, November 2015
Figure 66: Agreement with the statement ‘I buy own-label products for essential items (eg flour) so I
can afford to buy branded luxury items (eg alcohol, confectionary)’, by demographics, NI, November
2015
Figure 67: Agreement with the statement ‘I usually own-label products when purchasing low-cost items
(eg chocolate bars, bread)’, by demographics, NI, November 2015
Figure 68: Agreement with the statement ‘With own-label products you trade quality for a cheaper
price’, by demographics, NI, November 2015
Figure 69: Agreement with the statement ‘I would like to see a wider variety of own-label products
available at convenience stores (eg Spar, Centra)’, by demographics, NI, November 2015
Figure 70: Agreement with the statement ‘I would switch my supermarket if it stopped stocking my
favourite branded food and drink products’, by demographics, NI, November 2015
Figure 71: Agreement with the statement ‘There are not enough own-label products available in smaller
on-the-go pack sizes (eg fizzy drinks, chocolate)’, by demographics, NI, November 2015
Figure 72: Agreement with the statement ‘I would not want to be seen eating/drinking own-label
products’, by demographics, NI, November 2015
Figure 73: Agreement with the statement ‘I would like more information on the packaging of own-label
products about who produced the product’, by demographics, NI, November 2015
RoI Toluna data
Figure 74: If consumers prefer branded or own-label when buying fruit and vegetables, by
demographics, RoI, November 2015
Figure 75: If consumers prefer branded or own-label when buying bread, by demographics, RoI,
November 2015
Figure 76: If consumers prefer branded or own-label when buying meat, fish or poultry goods, by
demographics, RoI, November 2015
Figure 77: If consumers prefer branded or own-label when buying cheese, by demographics, RoI,
November 2015
Figure 78: If consumers prefer branded or own-label when buying butter or spreads, by demographics,
RoI, November 2015
Figure 79: If consumers prefer branded or own-label when buying frozen foods (eg chips, pizza), by
demographics, RoI, November 2015
Figure 80: If consumers prefer branded or own-label when buying chilled or frozen ready meals, by
demographics, RoI, November 2015
Figure 81: If consumers prefer branded or own-label when buying tinned/jars of goods, by
demographics, RoI, November 2015
Figure 82: If consumers prefer branded or own-label when buying crisps and nut snacks, by
demographics, RoI, November 2015
Figure 83: If consumers prefer branded or own-label when buying sweets and confectionary, by
demographics, RoI, November 2015
Figure 84: If consumers prefer branded or own-label when buying cereals, by demographics, RoI,
November 2015
Figure 85: If consumers prefer branded or own-label when buying biscuits, by demographics, RoI,
November 2015
Figure 86: If consumers prefer branded or own-label when buying cakes, buns, pastries, by
demographics, RoI, November 2015
Figure 87: If consumers prefer branded or own-label when buying cupboard staples (eg sugar, flour),
by demographics, RoI, November 2015
Figure 88: If consumers prefer branded or own-label when buying soft drinks/juices, by demographics,
RoI, November 2015
Figure 89: If consumers prefer branded or own-label when buying alcohol, by demographics, RoI,
November 2015
Figure 90: Factors (other than price) that are likely to encourage consumers to buy an own-label
product instead of a branded product, by demographics, RoI, November 2015
Figure 91: Factors (other than price) that are likely to encourage consumers to buy an own-label
product instead of a branded product, by demographics, RoI, November 2015 (continued)
Figure 92: Factors (other than price) that are likely to encourage consumers to buy an own-label
product instead of a branded product, by demographics, RoI, November 2015 (continued)
Figure 93: Factors (other than price) that are likely to encourage consumers to buy a branded product
instead of an own-label product, by demographics, RoI, November 2015
Figure 94: Factors (other than price) that are likely to encourage consumers to buy a branded product
instead of an own-label product, by demographics, RoI, November 2015 (continued)
Figure 95: Factors (other than price) that are likely to encourage consumers to buy a branded product
instead of an own-label product, by demographics, RoI, November 2015 (continued)
Figure 96: Agreement with the statement ‘I'm happy to try an own-label product that looks just like the
leading brand’, by demographics, RoI, November 2015
Figure 97: Agreement with the statement ‘If I'm buying something as a treat (eg chocolate, ice cream), I
tend to buy brands rather than own-label’, by demographics, RoI, November 2015
Figure 98: Agreement with the statement ‘I choose to shop at specific retailers because of their ownlabel
products’, by demographics, RoI, November 2015
Figure 99: Agreement with the statement ‘I would not feel comfortable giving an own-label product as a
gift (eg chocolate)’, by demographics, RoI, November 2015
Figure 100: Agreement with the statement ‘I buy own-label products for essential items (eg flour) so I
can afford to buy branded luxury items (eg alcohol, confectionary)’, by demographics, RoI, November
2015
Figure 101: Agreement with the statement ‘I usually own-label products when purchasing low-cost
items (eg chocolate bars, bread)’, by demographics, RoI, November 2015
Figure 102: Agreement with the statement ‘With own-label products you trade quality for a cheaper
price’, by demographics, RoI, November 2015
Figure 103: Agreement with the statement ‘I would like to see a wider variety of own-label products
available at convenience stores (eg Spar, Centra)’, by demographics, RoI, November 2015
Figure 104: Agreement with the statement ‘I would switch my supermarket if it stopped stocking my
favourite branded food and drink products’, by demographics, RoI, November 2015
Figure 105: Agreement with the statement ‘There are not enough own-label products available in
smaller on-the-go pack sizes (eg fizzy drinks, chocolate)’, by demographics, RoI, November 2015
Figure 106: Agreement with the statement ‘I would not want to be seen eating/drinking own-label
products’, by demographics, RoI, November 2015
Figure 107: Agreement with the statement ‘I would like more information on the packaging of own-label
products about who produced the product’, by demographics, RoI, November 2015
UK RESEARCH METHODOLOGY
Consumer research
Sampling and weighting
Definitions
Qualitative Research
Further Analysis
Brand & Social Media Research
Trade research
Informal
Formal
Desk research
Statistical Forecasting

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