Are own label products taking over?
UK Consumers are choosing own-brand products to try and manage their ever-increasing grocery bills...
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Grocery industry experts from Kantar predict December will break records in the UK, with sales projections higher than ever before.
Take-home grocery sales have increased by +5.9% year on year in the 12 weeks to 27 November 2022. That marks the fastest level of growth since March 2021, setting the stage for many Brits to have a more expensive Christmas season than ever before.
Atlante stays on top of food industry trends through carefully tracked market insights. From Fraser McKevitt, head of retail and consumer insight at the global market research group Kantar:
“The cost of a traditional Christmas dinner for four has hit £31 in 2022, an example of just how much rising prices are impacting people at the tills and in their daily lives.”
While numerous reports over the past few weeks have seen UK grocery price inflation continuing to rise, the latest report from Kantar shows that prices are now experiencing a slight dip for the first time in 21 months.
McKevitt goes on to explain:
“As we move into the busiest time of the year for supermarkets, there are signs that the pace of grocery price inflation is easing off slightly as we saw a small dip of -0.1 percentage points this month [...] Grocery inflation still has a long way to come down though, and based on the current rate, shoppers will have to spend an extra +£60 in December to buy the same items as last year.”
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KANTAR HIGHLIGHT SUMMARY
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AN UPDATE ON INFLATION
Grocery inflation now stands at 14.1%† for the 12-week period ending 27 November 2022. Prices are rising fastest in markets such as milk, dog food and butter.
OWN-LABEL SALES ON THE RISE
With grocery inflation dipping for the first time in 21 months, it will be interesting to see whether consumers return to buying branded goods at the start of 2023 or whether they continue to buy own-label products in a bid to save money.
Consumers currently favour own-brand over branded goods because they are generally more cost-effective, according to market research insights like those referenced below.
Read more: Consumers Favour Own-Brands Amidst Cost of Living Crisis
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Where should a supermarket's own-brand buyer begin? If you’re looking to source quality Italian products, Atlante can help you find the right producers and suppliers.
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