l Private labels continue to make inroads into the territory of famous brands, according to a new report from market analyst Datamonitor. Consumer spending on private label food, drinks and personal care reached $108 billion in 2005, and Datamonitor forecasts this will increase to $131 billion in 2010.
“Consumers increasingly trust retailers’‚ own offerings and are more willing to switch from buying famous brands to buying private label goods,” said Matthew Adams, consumer markets analyst, Datamonitor, Chicago, IL.
In the U.S., private label growth has been the strongest in food during the past five years, although the growth in personal care between 2005 and 2010 will surpass growth in all other markets. However, to 2010 and beyond, private label food in the U.S. will reach a market value in excess of $100 billion by the end of the forecast period, and account for almost 25% of total food spending.
The overall European private label market in 2010 will amount to over $300 billion. Personal care is the only market where private label share will narrowly fail to achieve a 20% stake of the overall market by 2010.
“Differences in culture and the retail landscape within each country affect the extent of private label penetration,” noted Mr. Adams. More info: www.datamonitor.com.