Private label performance remains strong in Irish grocery market – Bord Bia
Private label currently accounts for 38% of all retail sales in Ireland, up from 35% two years ago, according to data from Kantar Worldpanel.
Analysing the figures Maria Stokes of Bord Bia’s Food and Beverage Division said branded products hold 51% of the market, and products without any brand name account for 11% of grocery lines.
According to Stokes what is most noticeable about this growth is that it is being driven by the discounters; growth in private label in the multiple channel is relatively flat having risen just 0.4% in the two years to September.
Aldi and Lidl hold a combined market share of 15.9% of the Irish grocery market.
Tesco is the largest holder of private label share, and has been demonstrating a significant decline down from 32% to 25% in the last 24 months to September this year.
Stokes says since March 2013, inflation of private label products has been below the rate of inflation of branded lines, and it is interesting to note branded and private label inflation rates in the graph below.
She added primary ingredients such as meat, eggs, and butter over-trade in private label as do chilled ready meals and chilled bakery products. Categories with strong established brands in the multiples, such as toiletries, tend to have less presence in private label.
The latest Kantar data clearly show branded products are losing share to all tiers of private label, and especially to standard private label, Stokes stated. “Despite some reticence in the early stages of the entry of the discounters into Ireland they have been the forerunner in the promotion and growth of private label in the Irish market.”