{"id":34135,"date":"2023-05-02T12:06:37","date_gmt":"2023-05-02T12:06:37","guid":{"rendered":"https:\/\/www.irishfoodanddrink.com\/?post_type=news&p=34135"},"modified":"2023-10-04T14:16:30","modified_gmt":"2023-10-04T14:16:30","slug":"plma-2023-trends-and-opportunities-for-private-label-in-europe","status":"publish","type":"news","link":"https:\/\/www.irishfoodanddrink.com\/ja\/news\/plma-2023-trends-and-opportunities-for-private-label-in-europe\/","title":{"rendered":"PLMA 2023: Trends and Opportunities for Private Label in Europe"},"content":{"rendered":"

Europe is a dynamic and highly active market for private label (PL) and as <\/span>a result of the cost of living crisis, European PL is gaining significant momentum. PL is no longer a basic alternative to brands but instead showcases traits such as quality, innovation, health and sustainability. Ahead of PLMA 2023, this article will outline key insights and examples from the PL landscape in Europe and why Irish suppliers can help you grow your PL share.\u00a0<\/span>\u00a0<\/span><\/p>\n

At PLMA, Bord Bia will be with 11 great Irish suppliers, experienced in PL production, and looking to grow in the European market. <\/span>Come meet us at Hall 5, Stand 5.S07<\/strong>\u00a0at PLMA! <\/span><\/b>There you can find out more of our PL insights to help you differentiate and grow your business.\u00a0<\/span>\u00a0<\/span><\/p>\n

3 insights on the Private Label landscape in Europe:<\/span><\/b>\u00a0<\/span><\/p>\n

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  1. There is a well-developed and dynamic PL market in Europe with value shares at 50.4% in the UK, 49.8% in the Netherlands, 48.2% in Germany and 42.1% in France which is only expected to continue to grow (PLMA, 2022). In the Netherlands, research suggests 70% of shoppers are buying more PL than they have done before, the vast majority of whom will continue buying PL (van Woensel Kooy, 2023).\u00a0<\/span>\u00a0<\/span><\/li>\n
  2. Trading from brands to PL is a very common consumer strategy in dealing with a cost-of-living crisis (Ritson, 2022). With each economic downturn, PL increases its share, and largely holds on to that increased share. However, consumers are not interested in trading down on quality, (Bord Bia, 2022). The PL challenge is to balance value, quality, innovation and sustainability, which requires finding the perfect suppliers.\u00a0<\/span>\u00a0<\/span><\/li>\n
  3. PL is no longer only targeted at low-budget shoppers. While traditionally targeted towards families on a budget, PL has expanded to other demographics such as the 16-34 year olds (Mintel, 2022). This diversification of consumers has resulted in segmentation of the category. Irish manufacturers are well-experienced in offering artisan, organic, plant-based ranges to meet these needs.<\/span>\u00a0<\/span>\u00a0<\/span><\/li>\n<\/ol>\n

    5 reasons to invest in Irish suppliers for your PL range<\/span><\/b>\u00a0<\/span>\u00a0<\/span><\/p>\n

    \"Green<\/p>\n

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    1. Irish producers exhibiting at PLMA and more besides <\/span>have the agility and expertise to partner with European retailers thanks to many years of experience in the sophisticated UK market.<\/span>\u00a0<\/span><\/li>\n
    2. Our producers can help genuinely differentiate your brand. The Irish PL supply base has been providing products that earn the tags of \u2018hand crafted\u2019, \u2018artisan\u2019 and \u2018luxury\u2019, offering your brand a point of status.<\/span>\u00a0<\/span><\/li>\n
    3. Irish producers are backed by the market insights of Bord Bia, meaning they understand your market and your brand.\u00a0<\/span><\/li>\n
    4. Ireland has a growing number of companies which are offering really innovative products in the PL space, such as boutique dairies that put an emphasis on minimal processing and unrivalled authentic taste. These higher margin premium products build and retain customer loyalty at a time when shoppers are increasingly fickle.\u00a0<\/span><\/li>\n
    5. All exhibitors are certified by Origin Green, Ireland\u2019s national food and drink sustainability programme. Independently verified certification ensures our producers are setting and meeting robust sustainability targets annually across a range of areas. This gives you peace of mind that your PL range from Ireland is helping meet your sustainability targets.\u00a0<\/span><\/li>\n<\/ol>\n

      Examples of changes in Private Label 2023:\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n

      Consumers are not willing to compromise on quality and taste, and <\/span>Marks and Spencer in the UK excel in this area<\/span> across a range of <\/span>PL<\/span> tiers, driving NPD through its Innovation Hub (IGD, 2022). As<\/span> part of its convenience offering, M&S has developed<\/span> diverse products such as <\/span>premium, <\/span>ready-made <\/span>sandwiches or its<\/span> meal solutions for children designed with dieticians from Great Ormond\u2019s Street Hospital. It also has an<\/span> ultra-premium \u201cOur Best Ever\u201d<\/span> range, focusing on ready meals and desserts (IGD, 2022).\u00a0<\/span><\/span>\u00a0<\/span><\/p>\n

      Health<\/span><\/span>\u00a0<\/span><\/strong><\/p>\n

      The pandemic spurred on an awareness of healthy eating with<\/span> over 60<\/span>%<\/span> of Dutch, German and UK consumers <\/span>claim<\/span>ing to<\/span> make an effort<\/span> to eat more healthily (<\/span>Bord<\/span> Bia<\/span>, 2021)<\/span><\/span>.<\/span><\/span> It\u2019s<\/span> vital that PL ranges meet the increasing health needs of their consumer base. In Spain, Alcampo has introduced a PL range aimed specifically at seniors (PLMA, 2022). <\/span>The <\/span>Nutriscore<\/span> label, recommended to retailers by the European Commission<\/span> can be found on all PL packaging<\/span> or labels<\/span> in Albert Heijn in the Netherlands or E. LeClerc<\/span> in France.<\/span> T<\/span>his shows retailers leading the way<\/span> in<\/span> health<\/span>, with brands having to catch up. <\/span>Studies have shown this label<\/span> influences consumer choice<\/span>, with products without a <\/span>Nutriscore<\/span> label <\/span>experiencing dips in <\/span>consumption when compared against a similar product with the label<\/span> (ISI Insights, 2021)<\/span>. <\/span>At PLMA, there will be <\/span>a number of<\/span> Irish producers <\/span>with adult nutrition, <\/span>superfood<\/span> and clean label solutions<\/span> at their heart<\/span>. Read more about them <\/span><\/span>here<\/span><\/span><\/a>.<\/span><\/span>\u00a0<\/span><\/p>\n

      Sustainability<\/span><\/span>\u00a0<\/span><\/strong><\/p>\n

      Retailers are <\/span>often <\/span>focusing their sustainability strategies on their PL range<\/span>. <\/span>I<\/span>n Germany,<\/span> Penny has an entire sustainable PL range, <\/span><\/span>\u2018<\/span>Food for Future\u2019<\/span><\/span><\/a>. These<\/span> products<\/span> are awarded a<\/span> Pro Planet label for being socially and environmentally sustainable <\/span>and <\/span>also<\/span> for<\/span> meet<\/span>ing<\/span> a high animal welfare standard. Penny aims for 25% of its <\/span>PL <\/span>products to have the Pro Planet label by 2025<\/span> (IGD, 2022)<\/span>.<\/span> M<\/span>any other retailers in Europe have similar goals<\/span>. <\/span>R<\/span>etailers<\/span> have to<\/span> get this right<\/span>, <\/span>or <\/span>there can be reputational and commercial risk. A<\/span>s Origin Green members, Irish suppliers can help them.<\/span><\/span><\/p>\n

      Innovation<\/span><\/b>\u00a0<\/span><\/p>\n

      Retailers must innovate and react to consumer needs rapidly, and Albert Heijn makes this a core element of their corporate strategy (IGD, 2022). Albert Heijn \u2018created\u2019 a brand with its chocolate line Delicata to compete with the ethical claims of Tony\u2019s Chocoloney. The two companies collaborated so AH could access Tony\u2019s Open Chain platform to eradicate slavery and exploitation from the Delicata supply chain (AH Nieuws, 2019). Here is an example of a retailer seeing a consumer need and quickly moving to meet it, which needs agile and innovative suppliers.<\/span>\u00a0<\/span><\/p>\n

      What\u2019s Next?<\/span><\/b>\u00a0<\/span><\/p>\n