Already, private labels have a market share around 40 percent in Switzerland, UK and Spain. These countries have taken the lead in this development, while the private label penetration in Eastern Europe is still quite modest.
As a result of the trend, retailers are becoming brand owners themselves and the private label products are gradually considered to be like any other brand and are no longer necessarily signalling low price. This puts also changing requirements on the packaging to be more attractive, advanced and also, in some cases, more expensive than before.
All stakeholders in the retail value chain are affected by the success of private labels. Consumers are enjoying lower prices and wider offering. A-brands, the leading brands in their category, will only be able to stay relevant by being innovative and using brand strengths whereas the B-brands are expected to continue to struggle for market share and profit.
Brand owners need to differentiate and stand out even more in stores by using sophisticated packaging, such as, corrugated constructions and point-of-sale solutions ensuring their products are presented in an attractive way.
Read more about private labels and the other retail packaging trends in Stora Enso Packaging Solutions' Viewpoint on Retail Packaging in 2016 and beyond. The whole report can be downloaded from storaensopack.com/press-media