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WATFORD, England -- According global food and grocery research firm IGD here, private label food and grocery items will make up 26.8 percent the market across Europe within the next four years.
By 2010, Europeans will be spending about 430 billion euros (US $548.5 billion) on retailers' private label brands, an increase of 45 percent from the current 298 billion euros (US $380.1 billion)
"The U.K. currently leads the way in terms of food and grocery own label," noted IGD senior international business analyst Jonathan Gunz in a statement. "The future growth in Europe will come from Russia and the rest of Eastern and Central Europe, where penetration levels are currently fairly low, despite relatively a large grocery market."
Continued Gunz: "Shoppers in Western Europe have seen for themselves how own label is taking up more and more shelf space. Categories like healthy eating, premium, value, organic, and lifestyle have helped retailers' own brands become much stronger. The same is likely to happen in the emerging markets of Europe and beyond."
Better quality, marketing, and packaging of private label products have resulted in greater shopper acceptance, says IGD. The firm expects that retailers will extend their private label portfolios to include such categories as financial services, electrical goods, and communication technology in response to customer needs and new opportunities.
According to IGD estimates that the top 10 private label markets in Europe as of 2005 are the United Kingdom, Germany, France, Spain, Italy, Switzerland, the Netherlands, Belgium, Sweden, and the Republic of Ireland.