Own-label products will continue to take an increased share of the UK grocery market, according to a report published today (11 July).
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The study, carried out by market intelligence group Key Note, forecasts further growth from the own-label sector.
According to the report, entitled “Key Note’s Supermarket Own Labels Market Assessment”, own-label accounted for 40% of grocery sales in 2006, up from 38.5% in 2002.
Moreover, the report forecasts that the overall share of own-label within the UK grocery market will rise to over 42% by 2011, reflecting the growth of premium goods and the expansion of own-label penetration into areas where they hold a relatively low share of the market.
Some 88% of people surveyed believed that shops sell own-brands to offer lower prices, the report states. However, a significant proportion (78.1%) believes that shops offer own-brands in order to increase their margins. Less than half of the respondents said that they tried to buy brands rather than own brands where possible.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataKey Note states that own-label premium ranges such as Tesco’s ‘Finest’ and Sainsbury’s ‘Taste the Difference’ are now “integral” to the supermarkets’ brands.
