Brand vs Private Labels
Distributors are looking for manufacturers willing to embark on private label projects, offering innovative, high-end products with an attractive image.
Inflation has caused trends to change
After covid, the rules of the game have changed, and what matters now is to offer consumers high-end products, with an attractive image and at a reasonable price, leaving aside branding and valuing the product itself more.
The new private labels
In recent years, private label items have gradually moved away from their traditional role as an affordable, imitation alternative to branded items. Instead, when consumers purchase private label items today, they receive excellent products with amazing design and quality.
Consumers no longer view private labels as less than their counterparts; rather, the quality has improved markedly.
Currently, we are witnessing the growing dominance of private label innovation. All private label innovations have increased significantly, while in some categories we see a decline in branded products. For example, in alcoholic beverages, confectionery and snacks, and home care products, private labels recorded considerable growth compared to the decline in the speed of innovation across the category.