One in five lei a Romanian spends on food goes towards private label products from such brands as K-Classic (Kaufland), Aro (Metro Cash & Carry), 365 (Mega Image) and Pilos (Lidl), developed by retailers to take on established brands.
On markets like beverages and home care products, private labels have yet to make it past 10%, as brands, especially international ones, are still in the lead. On the other hand, private labels have already conquered markets like yogurt, chocolate and Romanian yellow cheese, which used to be dominated by brand name products until recently.
“Private labels accounted for 14% of the entire
FMCG (fast-moving consumer goods) market in 2015, compared with 13% in 2014,” the representatives of the market research company GfK say.
They saw the highest increase on the food segment, reaching 20%, largely because of the dairy market, they added.
Out of the total FMCG market of 75 billion to 80 billion lei (EUR16.8 billion to EUR18 billion), private labels reached EUR2.3 billion to EUR2.5 billion, according to ZF’s calculations based on GfK and National Statistics Institute data. (EUR1=RON4.4674)
(English version by Loredana Fratila-Cristescu)