Market Research Logo

Private Label Food and Non-alcoholic Drink - UK - November 2015

Private Label Food and Non-alcoholic Drink - UK - November 2015

“That three in 10 shoppers would like to have a say in new products being added to own-label ranges, indicates this an a valuable route for own-brands to canvas the opinions of shoppers whilst also helping to build engagement and loyalty.”

Emma Clifford, Senior Food and Drink Analyst

This report covers the following areas:

Inviting shoppers to influence NPD can help to elicit trust and build quality perceptions
Scope to harness interest in how own-label products are made
Supporting small producers can enhance the appeal of own-label products


OVERVIEW
What you need to know
Products covered in this report
EXECUTIVE SUMMARY
The market
Figure 1: Retail value sales and forecast of private label food and non-alcoholic drink, UK, 2010-20
Market factors
Figure 2: Retail Price Index of all food, January 2010-September 2015
Companies, brands and innovation
The consumer
Figure 3: Purchasing of own-label and branded food and non-alcoholic drinks, September 2015
Figure 4: Attitudes towards premium own-label food and non-alcoholic drinks, September 2015
Figure 5: Behaviour relating to purchasing of own-label and branded food and non-alcoholic drink, September 2015
A poor own-label offer is a put-off
Figure 6: What food and non-alcoholic drink shoppers would spend extra money on, September 2015
Figure 7: Attitudes towards own-label and branded products, September 2015
Figure 8: Attitudes towards retailer exclusive brands, September 2015
What we think
ISSUES & INSIGHTS
Inviting shoppers to influence NPD can help to elicit trust and build quality perceptions
Scope to harness interest in how own-label products are made
Supporting small producers can enhance the appeal of own-label products
THE MARKET
What you need to know
The private label food market is worth £47.9 billion
Falling prices saw private label sales slip into decline in 2015
Private label outperforms brands thanks to booming sales at discounters
Rising consumer spending should promote trading up within own-label
Non-alcoholic drinks tend to be dominated by private label
Own-label has a near monopoly in fresh fruit and veg, meat and fish
Confectionery is the domain of brands
Market size and forecast
Figure 9: Retail value sales of private label food and non-alcoholic drink, at current and constant prices, 2010-20
The future
Figure 10: Retail value sales and forecast of private label food and non-alcoholic drink, UK, 2010-20
Market segmentation
Milk continues to be dominated by private label
Figure 11: Share of private label in retail* sales of non-alcoholic drinks, by category, 2014 and 2015
Own-label has a minor presence in CSDs and sports/energy drinks
Own-label continues to lose out in tea and coffee
Own-label has a near monopoly in fresh fruit and veg, meat and fish
Brands play a small role in ready meals
Figure 12: Share of private label in retail* sales of food, by category, 2014 and 2015
Confectionery is the domain of brands
Market drivers
Discounters continue to steal share, providing a boost to private label
Grocery retailers compete fiercely
Consumers find themselves in a better financial situation
Figure 13: Consumers’ financial wellbeing index, February 2009-April 2015
Price wars fuel food price deflation
Figure 14: Retail Price Index of all food, January 2010-September 2015
KEY PLAYERS
What you need to know
Branded products increase share of NPD in 2014
The branded to private label ratio varies widely between categories
Tesco and Asda review their entire product ranges
M&S launches a ‘Tastes of the British Isles’ range
Lidl launches major price comparison campaign against brands
Tesco introduces Brand Guarantee
Frozen food is put in the limelight
Launch activity and innovation
Branded products increase share of NPD in 2014
Figure 15: New product launches in the UK food and non-alcoholic beverages markets, branded vs private label, 2011-15
The branded to private label ratio varies widely between categories
Figure 16: Share of private label in new product launches of food and non-alcoholic drink products in the UK, by product
category, 2015*
Figure 17: Percentage point change in the share of private label in new food and non-alcoholic drinks launches, by product
category, 2013-14
M&S launches a ‘Tastes of the British Isles’ range
Ethnic Cuisines is also a strong focus for M&S
Asda launches Good & Balanced and Good & Counted ranges
Private label offers up ethical solutions
‘Project Reset’: Tesco reviews its entire product range
Asda also unveiled a new strategy
Aldi seeks to offer organic at an affordable price
Brand communication and promotion
Lidl launches major price comparison campaign against brands
Tesco introduces Brand Guarantee
Marks and Spencer introduces Sparks ‘members’ club’
Sainsbury’s pushes its private label ingredients
Iceland launches a Power of Frozen campaign
Waitrose allows shoppers to choose their own discounted products
Asda brings back the ‘pocket tap’
Aldi sponsors Team GB ahead of Rio 2016 Olympics
Grocers take very different approaches in their Christmas 2015 advertising
THE CONSUMER
What you need to know
Over-55s are top buyers of premium own-label products
High levels of mix and matching across brands and own-label
Premium own-label has to innovate and prove its value
Giving the shoppers a say can drive engagement
A poor own-label offer is a put-off
A third would not spend extra on their grocery shop
Everyday low pricing appeals
Shoppers are keen to support small producers
Independent awards help to build perceptions of quality
Purchasing of own-label and brands
Over-55s are top buyers of premium own-label products
Majority buy both value and premium own-label
Figure 18: Types of own-label and branded products bought, September 2015
Attitudes towards premium
own-label
One in two happy to receive premium own-label as a gift
Premium own-label has to innovate…
…and prove its value
Figure 19: Attitudes towards premium own-label food and non-alcoholic drinks, September 2015
Shopping behaviour
Majority compare own-label and brand prices
Figure 20: Behaviour relating to purchasing of own-label and branded food and non-alcoholic drink, September 2015
Half of shoppers compare ingredients
A poor own-label offer is a put-off
Giving the shoppers a say can drive engagement
What shoppers would spend extra money on
Two thirds of people would spend extra on their grocery shop
Figure 21: What food and non-alcoholic drink shoppers would spend extra money on, September 2015
One in three would trade up to more expensive foods
Brands and premium own-label see limited appeal
One in four would spend extra at specialist stores
Attitudes towards own-label and branded products
Everyday low pricing appeals
Own-label is seen as savvy shopping
Figure 22: Attitudes towards own-label and branded products, September 2015
Transparency can win over own-label shoppers
Shoppers are keen to support small producers
Qualities associated with own-label, private label brands and brands
Methodology
Dairy Milk excels on quality perception
Figure 23: Correspondence analysis – Private label and branded chocolate products, September 2015
Figure 24: Private label and branded chocolate products, September 2015
Dairy Milk also scores the highest on indulgence and fun
Moser Roth seen to be as special as Cadbury’s Dairy Milk
Many people are unsure about Lidl’s Fin Carre
Attitudes towards retailer exclusive brands
Shoppers want the best of both
Figure 25: Attitudes towards retailer exclusive brands, September 2015
Tertiary brands more acceptable as gifts than premium own-label
Independent awards help to build perceptions of quality
APPENDIX
Data sources, abbreviations and supporting information
Abbreviations
Consumer research methodology
Fan chart forecast
Market size and forecast
Figure 26: Best- and worst-case forecasts for private label food and non-alcoholic drink, by value, 2014-19
RESEARCH METHODOLOGY
UK Research Methodology
Sampling and weighting
Face to Face Surveys
Definitions
Brand & Social Media Research
Trade research
Desk research
Statistical Forecasting
The Mintel fan chart

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report