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Europe is a dynamic and highly active market for private label (PL) and as 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.  

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

3 insights on the Private Label landscape in Europe: 

  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).  
  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.  
  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.  

5 reasons to invest in Irish suppliers for your PL range  

Green Field Ireland

  1. Irish producers exhibiting at PLMA and more besides have the agility and expertise to partner with European retailers thanks to many years of experience in the sophisticated UK market. 
  2. Our producers can help genuinely differentiate your brand. The Irish PL supply base has been providing products that earn the tags of ‘hand crafted’, ‘artisan’ and ‘luxury’, offering your brand a point of status. 
  3. Irish producers are backed by the market insights of Bord Bia, meaning they understand your market and your brand. 
  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. 
  5. All exhibitors are certified by Origin Green, Ireland’s 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. 

Examples of changes in Private Label 2023:  

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

Health 

The pandemic spurred on an awareness of healthy eating with over 60% of Dutch, German and UK consumers claiming to make an effort to eat more healthily (Bord Bia, 2021). It’s 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). The Nutriscore label, recommended to retailers by the European Commission can be found on all PL packaging or labels in Albert Heijn in the Netherlands or E. LeClerc in France. This shows retailers leading the way in health, with brands having to catch up. Studies have shown this label influences consumer choice, with products without a Nutriscore label experiencing dips in consumption when compared against a similar product with the label (ISI Insights, 2021). At PLMA, there will be a number of Irish producers with adult nutrition, superfood and clean label solutions at their heart. Read more about them here. 

Sustainability 

Retailers are often focusing their sustainability strategies on their PL range. In Germany, Penny has an entire sustainable PL range, ‘Food for Future’. These products are awarded a Pro Planet label for being socially and environmentally sustainable and also for meeting a high animal welfare standard. Penny aims for 25% of its PL products to have the Pro Planet label by 2025 (IGD, 2022). Many other retailers in Europe have similar goals. Retailers have to get this right, or there can be reputational and commercial risk. As Origin Green members, Irish suppliers can help them.

Innovation 

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 ‘created’ a brand with its chocolate line Delicata to compete with the ethical claims of Tony’s Chocoloney. The two companies collaborated so AH could access Tony’s 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. 

What’s Next? 

  • Come meet us at Hall 5, Stand 5.S07 at PLMA, 23 & 24 May 
  • You can find the profiles of 11 exhibitors here on Irish Food and Drink, all of whom are equipped to meet your business targets and consumer needs.  
  • If you would like to organise a meeting with us or a specific client, please reach out to us at privatelabel@bordbia.ie or danny.bowles@bordbia.ie.  

 

References:  

AH Nieuws, 2019. Delicata bars with Tony’s Open Chain chocolate are now available at Albert Heijn [Accessed 28 February] Available at: https://nieuws.ah.nl/vanaf-nu-delicata-repen-met-tonys-open-chain-chocolade-in-schap-bij-albert-heijn/  

Bord Bia, 2021. Dietary Lifestyles – The Netherlands. [online] Bord Bia Thinking House. Available at:

<https://www.bordbia.ie/industry/insights/publications/dietary-lifestyle-report-march-2021/> [Accessed 28 February].  

Bord Bia, 2022. Inflationary Impact Report [Accessed 6 March] 

IGD, 2022. Private Label in the Cost-crisis Era. [Accessed 25 February]. 

IGD, 2022. Top 10 retailers in Europe winning with private label [Accessed 25 February]  

IPLC, 2022. How to become a private label supplier of choice [Accessed 7 March] Available at: https://www.iplc-europe.com/how-to-become-a-private-label-supplier-of-choice/?lang=en  

ISI Insights, 2021. How companies can use the Nutriscore to their advantage [Accessed 26 February] Available at: https://www.isi-insights.com/en/blog/nutri-score 

Mintel, 2022. Private Label: Getting Ready for 2023 [Accessed 25 February]  

PLMA. 2023. PLMA E-Scanner March 2023. Available: https://www.plmainternational.com/industry-news/plma-newsletter [Accessed 20 March 2023]. 

Ritson, M. 2022. The best way to make your brand vulnerable to private label is to commodify it. Marketing Week. Available at: https://www.marketingweek.com/ritson-private-label/ [Accessed 10 March 2023] 

van Woensel Kooy, P. 2023. Nederlander blijft bij huismerk: ‘zelfde kwaliteit voor minder geld’. Marketing Tribune. Available: https://www.marketingtribune.nl/food-en-retail/nieuws/2023/02/nederlander-blijft-bij-huismerk-zelfde-kwaliteit-voor-minder-geld/index.xml [Accessed 11 April 2023]. 

Bord Bia has published its latest Meat Shopper Insights report for Q1 2022. Once again, this report looks at key trends in how European shoppers are buying meat. This report includes data for all 7 European markets (Ireland, UK, France, Germany, Belgium, Italy, Sweden) included in the research.

This report looks at the impact of inflation across Europe. Inflation is causing a rise in energy prices, which is affecting household economic decisions. Grocery is a clear area where shoppers can reduce expenditure.

When shopping for meat is it clear that concern over cost is visible. Over the 2-year period (2020-2022), expensiveness is increasing as a barrier to purchase and has ranked as the 1st or 2nd barrier to purchase in all markets with the exception of Italy. This is why future expected consumption of animal protein is due to increase. Yet, although consideration and purchase numbers are down on this time last year, the figures are slightly up on the 2020 Q1 figures.

When buying beef, the report highlights that is difficult to get shoppers to trade up, with steak purchases being particularly hit as shoppers look to more affordable cuts such as beef strips, stewing beef and burgers.  Trips to restaurants have also been hit hard as people try to cut down on spending. To replace restaurant trips, some shoppers are instead looking for high quality meat for at-home special occasions. Buyers should consider this as an opportunity to innovate.

However, grass-fed still has the ability to keep shoppers engaged and can help justify shoppers in their decision to trade up. Shoppers are aware that grass-fed translates to better quality beef. The report highlights that despite cost concerns, grass-fed is still trending up as a driver to purchase.

Please find the full Q1 2022 Bord Bia Meat Shopper Insights report here. For further information on developments within the Irish meat sector and sustainable Irish meat exporters please contact amsterdam@bordbia.ie in your local Bord Bia office.

 

Covid accelerated the growth of online retail and a series of large investments and takeovers will speed up these developments even more.

Size of the opportunity

The European market for groceries is worth €1.644 billion, with online groceries worth €52.1 billion. The average market share of online grocery is 3.2%. In the Netherlands, the market share of online groceries is expected to grow from 5.1% in 2021 to 9.6% in 2026, in the U.K from 10.5% in 2021 to 11.8% in 2026 and in France from 5.2 % in 2021 to 7.9% in 2026. Germany, Italy and Spain are less online oriented[1].

At the moment the market is very fragmented with many online players fighting for space in the market.

Groceries delivered in 10 minutes

On the quick commerce front, there are now 10+ companies across Europe with more-or-less the same business model. Pure Quick commerce players such as Getir, Gorillas, Flink and Zapp, who have received large investments to expand their presence, seem to have a chance of winning the fight. Aggregators such as Just Eat or Uber Eats can easily add dark stores to their current operation enabling them to compete in this arena.

Deliver all

Amazon’s delivery service for fresh groceries is also on the rise in Europe. The e-commerce giant delivers in a number of cities in the UK, France and Germany while in Spain and Italy they have started delivering to homes in Madrid and Milan. 

Local market to your home

The French La Belle Vie or the Dutch Crisp are examples of online service who bring anything you would find in a local outdoor food market to your home. These services are also expanding their offering and find partnerships to grow. The German food box giant Hello Fresh, who tripled their customer base over the past two years, opened a grocery store in their app and delivers extra groceries additional with their meal boxes.

The retail experience

When online grocery shopping becomes more common, the traditional retailers will need to win the customers with all the advantages a physical shop has. Retailers need to offer an experience to a customer to retain them. The stores can serve as a meeting point where food and drink can be bought and consumed. A place where you can get advice from experts and where you can be inspired by products.

The retail landscape is becoming more diverse. The consumer needs of each of the shopping platforms varies. However, with the rise of online commerce, buyers should consider logistics, added costs due to delivery drivers and quality of products reaching their end consumer.

For further information on sustainable Irish food and drink exporters please contact amsterdam@bordbia.ie in your local Bord Bia for supplier connections

[1] IGD, March 2022

Covid accelerated the growth of online retail and a series of large investments and takeovers will speed up these developments even more.

Size of the opportunity

The European market for groceries is worth €1.644 billion, with online groceries worth €52.1 billion. The average market share of online grocery is 3.2%. In the Netherlands, the market share of online groceries is expected to grow from 5.1% in 2021 to 9.6% in 2026, in the U.K from 10.5% in 2021 to 11.8% in 2026 and in France from 5.2 % in 2021 to 7.9% in 2026. Germany, Italy and Spain are less online oriented[1].

At the moment the market is very fragmented with many online players fighting for space in the market.

Groceries delivered in 10 minutes

On the quick commerce front, there are now 10+ companies across Europe with more-or-less the same business model. Pure Quick commerce players such as Getir, Gorillas, Flink and Zapp, who have received large investments to expand their presence, seem to have a chance of winning the fight. Aggregators such as Just Eat or Uber Eats can easily add dark stores to their current operation enabling them to compete in this arena.

Deliver all

Amazon’s delivery service for fresh groceries is also on the rise in Europe. The e-commerce giant delivers in a number of cities in the UK, France and Germany while in Spain and Italy they have started delivering to homes in Madrid and Milan. 

Local market to your home

The French La Belle Vie or the Dutch Crisp are examples of online service who bring anything you would find in a local outdoor food market to your home. These services are also expanding their offering and find partnerships to grow. The German food box giant Hello Fresh, who tripled their customer base over the past two years, opened a grocery store in their app and delivers extra groceries additional with their meal boxes.

The retail experience

When online grocery shopping becomes more common, the traditional retailers will need to win the customers with all the advantages a physical shop has. Retailers need to offer an experience to a customer to retain them. The stores can serve as a meeting point where food and drink can be bought and consumed. A place where you can get advice from experts and where you can be inspired by products.

The retail landscape is becoming more diverse. The consumer needs of each of the shopping platforms varies. However, with the rise of online commerce, buyers should consider logistics, added costs due to delivery drivers and quality of products reaching their end consumer.

For further information on sustainable Irish food and drink exporters please contact amsterdam@bordbia.ie in your local Bord Bia for supplier connections

[1] IGD, March 2022

In this edition, in the Netherlands, we see continued increase in the positive associations Dutch shoppers hold for beef, with 2 in 3 Dutch beef shoppers now saying beef is a protein worth paying more for.

Bord Bia’s Covid Indicators, 2020 show that Covid-19 resulted in an increase in the purchase of beef in general across Europe. In the Netherlands too, shoppers sought to replace their restaurant experience, and beef, especially steak had an important role in delivering this.

After 18 months of scratch cooking, shoppers are now looking for variety and inspiration. In the UK, Germany, Netherlands and Belgium, shoppers are looking for a change when it comes to beef. Dutch and UK shoppers are purchasing more shellfish and turkey, and in Italy and Ireland, shoppers are looking for something easier to cook than beef. Hence, across the board beef shoppers need more inspiration to maintain current purchase levels. Showing examples of what the final meal could look like and highlighting the USPs of Irish origin and traceability can help inspire shoppers.

Ireland’s grass-fed messaging can help offer the variety shoppers are looking for and convince them to pay extra for beef. We are seeing the beginnings of a post-Covid bounce in concern for sustainability. Shoppers claim they intend to cut back on beef consumption in the next three years, driven primarily by concerns over animal welfare and the environmental impact of beef production. Grass-fed beef is more likely to drive future purchase of beef compared to this time last year.

For more information, please get in touch with Laura.Crowley@bordbia.ie or Lian.Enters@bordbia.ie

Every month, Bord Bia interviews 375 grocery shoppers in key European markets: Ireland, the UK, the Netherlands, Germany, Belgium, Italy and Sweden; in order to understand key dynamics around buying proteins. We have been collecting these insights since Autumn 2019, allowing us to reliably compare trends in consumption, purchase patterns and