2021
9
UK Attitudes towards Private Label Food Market Report 2021
2021-05-26T04:06:26+01:00
OX1049143
2195
138808
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Report
en_GB
“A savvy shopping mentality is firmly ingrained among British consumers when it comes to their grocery purchases. Private label has become intrinsically linked with this; 56% of branded/own-label buyers say…

UK Attitudes towards Private Label Food Market Report 2021

£ 2,195 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the UK Attitudes Towards Private Label Food market, including the behaviours, preferences and habits of the consumer.

The private food and drink industry is seeing continued success in an incredibly competitive market, thanks to expansions into premiumisation. Improving the quality of own-label and private label foods is helping to shirk the idea that non-brand alternatives aren’t a downgrade. 47% of adults agree that there is little difference in quality, with only 31% saying branded food tastes better.

While the COVID-19 pandemic did cause some economic uncertainty, consumers are beginning to regain their shopping confidence as their incomes recover. Brands still pose a risk to private label food and drink, with 74% of shoppers considering brands as important in terms of choice, as well as 62% saying they would shop less at retailers that didn’t stock their favourite brands.

However, value still has an important role to play, with people turning to private labels as a way of saving money, with 64% of adults agreeing that own-label is a more affordable way of trying new products. By making new products and innovations more affordable, private labels can encourage consumers to trial new foods and alternatives.

Read on to discover more details or take a look at all of our UK Food and Foodservice market research.

Quickly understand

  • The impact of COVID-19 on purchasing of private label food and non-alcoholic drink.
  • Enticements to buying branded products over private label.
  • Behaviours related to private label and branded food and non-alcoholic drink.
  • Consumer attitudes towards private label and branded food and non-alcoholic drink.

Covered in this report

Private Labels: Sainsbury’s, Tesco, Aldi, Asda, Co-Op, M&S, Amazon, Iceland, Waitrose & Partners, Lidl, Hubbard’s Foodstore.

Brands: Cadbury, Walkers, Yorkshire Tea, Tropicana, Gü, PG Tips, Charlie Bigham’s.

Expert analysis from a specialist in the field

Written by Amy Price, a leading analyst in the Food & Drink sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

A savvy shopping mentality is firmly ingrained among British consumers when it comes to their grocery purchases. Private label has become intrinsically linked with this; 56% of branded/own-label buyers say that buying own-label makes them feel like a savvy shopper. This bodes well for the continuing relevance of private label even as consumer confidence and incomes rebound from the disruption brought by COVID-19.

Amy Price
Senior Food & Drink Analyst

Table of Contents

  1. Overview

      • Key issues covered in this Report
        • COVID-19: market context
          • Economic and other assumptions
            • Products covered in this Report
            • Executive Summary

                • Impact of COVID-19 on private label food and non-alcoholic drinks
                  • Figure 1: Short, medium and long-term impact of COVID-19 on private label food and non-alcoholic drinks, 7 May 2021
                • The market
                  • Real incomes plummet due to COVID-19 but bounce back in the autumn
                    • Most people’s financial situation is comfortable
                      • The ongoing rise of the discounters
                        • Range rationalisations hit brands
                          • Companies and brands
                            • Private label makes gains
                              • Some brands continue to perform well
                                • NPD by brands and private label is equal in 2020
                                  • Advertising focuses on cooking, pricing and provenance
                                    • The consumer
                                      • Own-labels lead brands, 87% purchasing these, compared to 74% of brands
                                        • Figure 2: Purchasing of own-label and branded food and non-alcoholic drink products in a typical month, March 2021
                                      • Taste and quality are among the top reasons to choose a brand
                                        • Figure 3: Enticements to choose a branded product over an own-label product, March 2021
                                      • Own-label appeals to shoppers’ savvy habits
                                        • Figure 4: Behaviours related to branded and private label food and non-alcoholic drink, March 2021
                                      • Affordability of private label means people can be more adventurous
                                        • Figure 5: Attitudes towards branded and own-label products, March 2021
                                    • Issues and Insights

                                      • Private label’s savvy appeal makes cutback on promotions a challenge for brands in the rebound from COVID-19
                                        • NPD remains a key means to stand out, private label poses intense competition to brands
                                          • Branded offer is crucial for enticing shoppers but private label range also influences where people shop
                                          • The Market – Key Takeaways

                                            • Real incomes plummet due to COVID-19 but bounce back in the autumn
                                              • Most people’s financial situation is comfortable
                                                • The ongoing rise of the discounters
                                                  • Range rationalisations hit brands
                                                  • Market Drivers

                                                    • Most people’s financial situation is comfortable
                                                      • Figure 6: Consumers’ current financial situation, January 2020-April 2021
                                                    • Unemployment set to peak in 2021
                                                      • Real incomes plummet due to COVID-19 but bounce back in the autumn
                                                        • Figure 7: Annual percentage change in CPI and AWE (regular pay), monthly basis, January 2018-February 2021
                                                      • The ongoing rise of the discounters
                                                        • Range rationalisations hit brands
                                                        • Companies and Brands – Key Takeaways

                                                          • Private label makes gains
                                                            • Some brands continue to perform well
                                                              • NPD by brands and private label is equal in 2020
                                                                • Advertising focuses on cooking, pricing and provenance
                                                                • Private label and Selected Brand Performances

                                                                  • Private label makes gains
                                                                    • Some brands continue to perform well
                                                                      • Cadbury Dairy Milk posts strong growth
                                                                        • Walkers extends its lead in crisps
                                                                          • Gü achieves value boost in declining chilled desserts market
                                                                            • Charlie Bigham’s sees sales grow in private label-dominant ready meals market
                                                                              • Tropicana benefits from success of 100% fruit juice in retail in 2020
                                                                                • Yorkshire Tea overtakes PG Tips and outperforms private label
                                                                                • Launch Activity and Innovation

                                                                                  • NPD by brands and private label is equal in 2020
                                                                                    • Figure 8: New product launches in the UK food and non-alcoholic beverages markets, branded vs private label, 2016-21
                                                                                  • NPD in many categories is dominated by private label
                                                                                    • Figure 9: Share of private label in new product launches of food and non-alcoholic drink products in the UK, by product category, 2020
                                                                                    • Figure 10: Private label NPD in baby food, 2020
                                                                                    • Figure 11: NPD in meat substitutes, 2020-21
                                                                                  • Amazon enters private label market
                                                                                    • Figure 12: Amazon NPD in food, 2021
                                                                                  • Grocers enter the recipe box market
                                                                                    • Premium NPD rises
                                                                                      • Figure 13: Share of private label in new product launches of food and non-alcoholic drink products carrying a premium claim, 2016-20
                                                                                    • Offering an alternative to restaurant meals
                                                                                      • Figure 14: NPD in ready meals that seek to recreate the takeaway/restaurant experience, 2020-21
                                                                                    • Opportunities to encourage trading up for occasions such as lunch…
                                                                                      • Figure 15: Premium private label NPD, 2020
                                                                                    • …as well as desserts
                                                                                      • Figure 16: NPD featuring a premium claim in desserts, 2020-21
                                                                                    • Pushing aspects such as provenance allows premium own-labels to stand out
                                                                                      • Figure 17: Private label NPD featuring provenance claims, 2020
                                                                                      • Figure 18: Premium NPD featuring provenance claims from the discounters, 2021
                                                                                    • Retailers relaunch value ranges
                                                                                      • Figure 19: Private labels relaunch value lines under new names, 2020-21
                                                                                    • Private label NPD continues to explore health
                                                                                      • Figure 20: Minus, plus and functional claim in private label new product launches of food and non-alcoholic drink products in the UK, 2016-21 (sorted by 2020)
                                                                                    • Functional immunity claims can tap into concerns brought about by COVID-19
                                                                                      • Figure 21: Immune system claims in private label new product launches of food and non-alcoholic drink products in the UK, 2016-21 (sorted by 2020)
                                                                                      • Figure 22: NPD in private label referencing immunity support, 2021
                                                                                    • Ready meals look to offer balanced nutrition
                                                                                      • Figure 23: NPD in ready meals with a focus on health, 2021
                                                                                      • Figure 24: Morrisons’ Fresh Ideas line focuses on balanced nutrition, 2019-20
                                                                                    • Environmental concerns inspire NPD
                                                                                      • Retailers trial packaging-free
                                                                                        • Co-op goes carbon-neutral
                                                                                          • Iceland launches plastic-free packaging for Pink Lady apples
                                                                                            • Grocers look to reduce plastic across ranges, including Easter eggs
                                                                                              • Figure 25: Easter NPD focusing on environmentally friendly packaging claims, 2021
                                                                                            • Supermarkets continue to move away from plastic trays in ready meals
                                                                                              • Asda launches recycle-ready packaging across its fresh chicken range
                                                                                                • Tesco removes 1 billion pieces of plastic…
                                                                                                  • …and changes packaging on cheese
                                                                                                    • Figure 26: Tesco reduces plastic on cheese packaging, 2020
                                                                                                  • Lidl uses ocean-bound plastic for food packaging
                                                                                                  • Advertising and Marketing Activity

                                                                                                      • Cooking becomes even more of a focus post-COVID-19
                                                                                                        • Sainsbury’s brings magic to autumn cooking
                                                                                                          • Tesco launches Let’s Cook campaign…
                                                                                                            • …and dedicates home cooking to loved ones
                                                                                                              • Making pricing a focus
                                                                                                                • Asda brings back pocket tap ad
                                                                                                                  • Aldi challenges shoppers to re-evaluate their preconceptions of the quality of its offering
                                                                                                                    • Lidl continues to push quality/low price cues
                                                                                                                      • Supermarkets draw attention to traceability and provenance
                                                                                                                        • Waitrose & Partners highlights commitment to sourcing high-quality ingredients
                                                                                                                          • Morrisons pushes British provenance in meat
                                                                                                                            • M&S relaunches Fresh Market Update campaign
                                                                                                                              • Tesco calls on people to go to the pub
                                                                                                                              • The Consumer – Key Takeaways

                                                                                                                                • Own-labels lead brands, 87% buying these, underpinned by savvy image
                                                                                                                                  • Brands bought by 74%, branded offer sways three in five shoppers
                                                                                                                                    • Most people retain existing shopping habits in the wake of COVID-19
                                                                                                                                      • Taste and quality are among top reasons to choose a brand
                                                                                                                                        • Promotions remain a driver for buying branded
                                                                                                                                          • Affordability of private label means people can be more adventurous
                                                                                                                                            • 48% say own-label range influences where they shop
                                                                                                                                            • Impact of COVID-19 on Consumer Behaviour

                                                                                                                                              • COVID-19 drives up at-home meal occasions and cooking…
                                                                                                                                                • …but people are keen to return to hospitality
                                                                                                                                                  • A boost to online shopping
                                                                                                                                                    • Health becomes more of a priority in the wake of the pandemic
                                                                                                                                                      • Sustainability rises on consumers’ radars
                                                                                                                                                      • Purchasing of Branded and Own-label Food and Non-alcoholic Drinks

                                                                                                                                                        • Own-labels lead brands, 87% purchasing these
                                                                                                                                                          • Brands bought by 74%
                                                                                                                                                            • Figure 27: Purchasing of own-label and branded food and non-alcoholic drink products in a typical month, March 2021
                                                                                                                                                          • Few people buy just own-label or branded
                                                                                                                                                            • Figure 28: Crossover in purchasing of own-label and branded food and non-alcoholic drink products in a typical month, March 2021
                                                                                                                                                          • Private label offers consumers the ability to trade up and down
                                                                                                                                                            • Figure 29: Purchasing of own-label and branded food and non-alcoholic drink products in a typical month, by financial situation, March 2021
                                                                                                                                                        • Changes to Purchasing of Branded and Own-label Food and Non-alcoholic Drinks

                                                                                                                                                          • Most people retain existing shopping habits
                                                                                                                                                            • Premium own-label benefits from ‘trading up while trading down’
                                                                                                                                                              • Figure 30: Changes to purchasing of branded and own-label food and non-alcoholic drinks, March 2021
                                                                                                                                                            • Brands see 10% buying more but 9% buy less
                                                                                                                                                            • Enticements to Choose a Branded Product over an Own-label Product

                                                                                                                                                              • Taste is the top reason to choose a brand
                                                                                                                                                                • Reformulation to government targets bears a risk
                                                                                                                                                                  • Proving taste warrants a focus in marketing
                                                                                                                                                                    • Figure 31: Enticements to choose a branded product over an own-label product, March 2021
                                                                                                                                                                  • Better quality would encourage half to buy branded
                                                                                                                                                                    • Advertising can play a role, premium ingredients hold potential for own-label
                                                                                                                                                                      • Promotions remain a driver to buying branded products
                                                                                                                                                                      • Behaviours Related to Branded and Own-label Products

                                                                                                                                                                        • Private label appeals to shoppers’ savvy habits
                                                                                                                                                                          • Figure 32: Behaviours related to branded and private label food and non-alcoholic drink, March 2021
                                                                                                                                                                      • Attitudes towards Branded and Own-label Products

                                                                                                                                                                        • Affordability of own-label means people can be more adventurous…
                                                                                                                                                                          • …to the detriment of brands
                                                                                                                                                                            • Figure 33: Attitudes towards branded and own-label products, March 2021
                                                                                                                                                                          • Branded offer is crucial for enticing shoppers…
                                                                                                                                                                            • …but 48% say own-label range influences where they shop
                                                                                                                                                                              • Brands need to do more to push ethical credentials
                                                                                                                                                                                • Figure 34: Tesco reduces plastic on cheese packaging, 2020
                                                                                                                                                                            • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                                                                • Abbreviations
                                                                                                                                                                                  • Consumer research methodology
                                                                                                                                                                                  • Appendix – Launch Activity and Innovation

                                                                                                                                                                                      • Figure 35: Share of new launches in the UK food and non-alcoholic drinks market, by launch type, 2016-21
                                                                                                                                                                                      • Figure 36: Company share of private label new product launches of food and non-alcoholic drink products in the UK, 2016-21 (sorted by 2020)
                                                                                                                                                                                      • Figure 37: Claim categories in private label new product launches of food and non-alcoholic drink products in the UK, 2016-21 (sorted by 2020)
                                                                                                                                                                                      • Figure 38: ‘Minus’ claims in private label new product launches of food and non-alcoholic drink products in the UK, 2016-21 (sorted by 2020)
                                                                                                                                                                                      • Figure 39: ‘Plus’ claims in private label new product launches of food and non-alcoholic drink products in the UK, 2016-21 (sorted by 2020)
                                                                                                                                                                                  • Appendix – Purchasing of Branded and Own-label Food and Non-alcoholic Drinks

                                                                                                                                                                                      • Figure 40: Purchasing of retailer-exclusive brands, March 2021

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