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60-70% of global consumers are “very positive” about private label products, Nielsen’s report shows

A decade ago seen as low-quality counterparts of branded products, now private labels have gained full trust and appreciation by global consumers, the latest Nielsen’s Global Survey of Private Label shows.

On average, 60% of the surveyed consumers from 60 countries agree that own-label products are of decent quality that is no worse than of branded products. The positive perception of own-label products in different aspects is slightly higher in the US (74% ) than in the UK (71%). In both countries the same share of consumers (71%) agree that the quality of private label products has improved, compared to 63% of average European perception.

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Pic.: perceptions of the private label products by consumers who “agree” on their high quality

As per value share of the private label products, the weighted global average is 16.5%, while Switzerland has the highest rate of 45% and Egypt has 0. The value share in the UK is also high—41%.

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Pic.: value share of private label products in different markets

In the UK in 2014, own-label products in grocery segment account for 54% of all supermarket grocery sales, where 1.4% are premium own-label grocery products, showing 5.2% year-on-year growth. For example, in North America own-label grocery products account for just 20%; in the developing countries such as China, India or Brazil—less than 5%.

Some other interesting facts on the British consumers’ perceptions of private labels:

  • 60% consider the quality of own-labels is as good as name brands ( 34% in 2010).
  • 42% consider the quality of own-labels is higher than name brands.
  • 26% consider the quality of own-labels not good enough.
  • 37% consider that own-label products are for people on tight budgets.
  • 44% would be willing to pay the same or more for an own-label product if they liked it (28% in 2010).
  • 50% would buy more own-label products if a greater variety was available.

The full Nielsen’s Global Survey of Private Label report can be downloaded here.

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