The consumption of private label products accelerates at the highest rate for four years

Spanish households spent an annual average of 990.4 euros on own-brand products between May 2021 and April 2022

MADRID, 8 Jul. (EUROPA PRESS) -

The consumption of own-brand supermarket products grew to 53.1% in April 2022, which represents an increase of 1.6 percentage points compared to the same month of the previous year, the highest in the last four years, according to the second edition of the Study on the Own Brand in Spain 2022 prepared by Aldi.

This data confirms the upward trend in the consumption of supermarket own-brand products. In fact, in 2022 there was the largest increase in the volume of this type of product in the shopping basket of Spanish households, without taking into account fresh products.

This same trend has been reflected in the average spending of Spanish households on own-brand products, which already accounts for 42% of the total budget of the shopping basket (without fresh products), two percentage points more than in 2021 and 3.5 points more than in 2019, when it stood at 38.5%. That is to say, the growth of the own brand has accelerated in the last year and already represents four out of every ten euros of the turnover of the sector in packaged products.

"At Aldi we maintain our commitment: that our customers can benefit from the lowest possible prices every day, in addition to attractive offers and promotions," said the Deputy CEO of Aldi in Spain, Íñigo Fika.

The report also reveals that one out of every two Spanish consumers (51%) declares that they have increased their consumption of private label products in the last three years and that 41% plan to continue increasing it in the next twelve months.

Spanish households spent an annual average of 990.4 euros on own-brand products between May 2021 and April 2022, which represents a slight decrease of 2% compared to the 1,007.91 in 2021 the previous year (period May 2020 to April 2021), a year marked in part by confinement. During the same period, spending by Spaniards on other brands also fell by 9%.

Regarding the consumer profile, in 2022 it is observed that all age groups increased the consumption of their own brand. However, the group under 34 years stands out, where the own brand accounts for 58% of the purchase volume (without fresh), two points more than the previous year. As age increases, the consumption of these products decreases, reaching 49% in people over 65 years of age, a figure that, however, has grown one point compared to 2021.

The reasons for the increase in the purchase of own brands in recent years are mainly the more affordable price (58%), the better value for money (51%) and the increase in the offer in the supermarket (40%). In 37% of cases, own brands have become reference brands for consumers in some products and, in 31%, the fact that they are made by well-known manufacturers has been an important factor in promoting their consumption. 77% of consumers say that when they try a private label product that they like, they stop buying the manufacturer's brand.

The origin is also relevant, to the point that 72% of Spanish consumers state that they prioritize the purchase of private label products if they verify that they come from national or local suppliers.

On the other hand, almost four out of five consumers highly or fairly value the reduction of plastics in packaging and for 1 out of 2 it is a determining factor in deciding whether or not to buy their own supermarket brand.

The second edition of the Study on the Own Brand in Spain 2022 prepared by Aldi also shows that the supermarket chain has contributed 9% of the growth in volume that the own brand has experienced in the first four months of this 2022 compared to the same period of 2019, according to Kantar Worldpanel.

In addition, the customers of this chain declare that they have increased their own brand consumption in the last three years more than the national average. Specifically, 61% of families who shop at Aldi state that they have increased their consumption of own-brand products in the last 3 years, 10 points above the average in Spain.

According to the company's own data, about 80% of the volume of its customers' purchases are own-brand products.