Supermarkets: Inflation reinstates private label products as leaders of the pack

The continued price hikes in essential goods and services is turning more and more consumers to private label products, which are now experiencing alarming growth rates, reminiscent of the days of the memoranda.

Although the “generic” products are no longer cheap but cheaper compared to branded ones, they are being sold, in the 7th month of this year, at the highest rates of the last decade.

According to data from market research firm IRI, sales of private label products rose 10.2% from January to July this year, when total supermarket sales of fast-moving consumer goods rose by 2.8% by value. due to the increase in prices. Specifically, supermarket sales reached 4.79 billion euros from 4.66 billion euros last year.

This is because the sales volume has declined in the 7th month of 2022 by 1.7% compared to the same time period in 2021, while the price per unit of sale has increased by 4%.

PL (private label) products recorded a historic high of ten years in 2014, at the time reaching 19%, to begin a gradual decline of their share in the following years, until 2021.

Consumer basket on fire

Based on IRI data, the largest price hikes were recorded in the subcategories:

– Cooking materials: +9.5%

– Personal hygiene items: +9.5%

– Dairy: +7%

– Frozen food: +5.8%

– Detergents and household cleaners: +5.7%

– Other household products: +4.8%

– Personal care and beauty items: 3.7%

– Packaged food: +3.5%

Fewer products

Due to inflation, fewer products, whether food or household items, are now placed in consumers’ baskets.

Only packaged foods (+2.1%) recorded a small increase in units, while non-alcoholic beverages (+0.6%) and snacks (+0.4) moved marginally higher.

The rest of the categories showed a decline and more specifically alcoholic beverages fell by 7.8%, detergents and household cleaners by 6.5%, as well as other household products, frozen food and personal care and beauty products by 5.2%, dairy 4.9%, personal hygiene items 4.7% and cooking materials 1.5%.

It should be noted that July saw the largest opening of the “scissors” between sales in value and in volume over the last three months.

Fewer and fewer offers

At the same time, the offers have started to become an endangered species.

In particular, promotions on detergents, cleaners, etc. accounted for 23.1% of the sales made in the 7th month of 2022, compared to 26.4% in the corresponding period of 2021.

In personal care and hygiene products to 32.1% from 34.2%, while in food to 23.8% from 24.8%.

Overall, promotions accounted for 24.5% of sales made in 7M 2022, compared to 25.9% in the same period of 2021.