Forum Marek Własnych

Sales of private-label products keep growing. Poles' top choice - meat and dairy products

16 november 2023
The value of the sales basket of FMCG products in Poland in September this year - PLN 271 billion. The lion's share, i.e. almost 73%, are food products. Data quoted by Retail Services NielsenIQ expert Przemysław Korotus shows that the share of private labels amounted to nearly PLN 53 billion, over 20% of the value of the entire basket

Have private labels been taking over the food market?

– Poles keep choosing private label products owing to private labels' good quality v price ratio. Next year may offer another development opportunity in this sector – argued Przemysław Korotusz, Junior Analytics Consultant, Retail Services NielsenIQ, during the Private Brands Forum at Targi Kielce. The current economic situation and recent crises have resulted in the situation where 52% of consumers buy only necessary products and save on luxuries, 45% actively look for promotions, and 26% choose cheaper brands. Then they start reaching for private label products, too. The trends intensify regardless of the sales channel, but nearly 83% of products are sold in discount stores. Discounters are the main player when it comes to private labels,  they now account for over 43% of the sales share. – For every PLN 5 spent on private label products, as much as PLN 4 goes to discount stores – added the lecturer. The report shows that over 50% of Poles recognise Biedronka as the cheapest retail chain.

– Retail chains decide to introduce private labels to build a network of loyal customers. The most important features are uniqueness, consistency, quality, benefit, and commitment. Undoubtedly Lidl  is a perfect example in Poland and Europe as far as private labels are concerned - said Marek Marzec, owner of the Ewa Bis Group. – It is imperative in building a brand to keep the promises made to the customer in the first batches of goods. This means that the quality of the products should be the same after three, five or ten years - March added.

As much as 25% of the private labels value in the grocery basket are dairy products,  meat is equally popular. The data presented by the expert clearly shows that there is an increased motivation of buyers to purchase private label products . – The key factors are lower price, high and continually improving quality and good price-quality ratio. Having analysed the situation concerning the Polish FMCG basket, we should see increasing the volumes, which will provide another opportunity to develop private labels in coming years - concluded the NielsenIQ expert.


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