Which PL product categories are growing, and which are declining? In which store formats do PL products dominate, and is this a stable trend?

The private label market (from now on referred to as PL) in Serbia is subject to trends that INPUT continuously monitors, implementing the insights it has obtained into its solutions and know-how. Most of the knowledge on this topic comes from the Shopper 360 study conducted by the market research agency GfK/YouGov.

What does the general overview say about the share of PL products in overall consumption, considering all retail formats? According to the conclusion from Shopper 360, the total value of the private label market slightly increased in 2023 by 1% compared to the previous year. While the share of PL in overall consumption was 22% in 2022, it rose to 23% in 2023.

PL Share in Retail by Format

In most retail formats, PL plays an important role and has a significant presence, except for small traditional stores that base their operations on the distribution of local brands.

The data related to the discount format is noteworthy regarding the share of PL in specific retail formats. Although discounters still hold the largest share of private label products, that share dropped by 5%, from 80% in 2022 to 75% in 2023. This is due to the fact that discounters have added even more local brands to their assortment, leading to slower PL growth compared to the previous year, when the market was strongly impacted by the arrival of Lidl and its expansive participation in private labels.

 

 

The global conclusion is that private labels' overall participation in Serbia has remained unchanged. However, further analysis provides additional insights regarding the product groups where PL has recorded the highest growth.

Growth in PL Product Share in Specific Categories

Categories where PL has recorded significant growth include:

• Canned Food (2.7%, with a share of 29.2%)
• Processed Meat Products (2.5%, with a share of 39.5%)

The insight that consumers prefer PL in these categories serves as guidance for retailers, who can facilitate business decisions. Namely, if a retailer considers introducing a private label, these should be canned or processed meat products.

Categories with a Decline in PL Share

When it comes to PL categories that are experiencing a decline, the following segments stand out:

• Savory Snacks (-3%, with a share of 17.6%)
• Sweets and Confectionery (-1.7%, with a share of 14.4%)
• Alcoholic Beverages (-1.3%, with a share of 4.5%)

These figures indicate a decrease in the popularity of private-label products in the mentioned categories.

In other categories, the share of PL is stable.

Follow INPUT's insights and trends that define the retail market in Serbia, and rely on our knowledge and experience when making decisions about your retail business. Contact us: the services we will provide  (planning, arrangement, and equipping of retail spaces) are supported by extensive knowledge of the trends that define the market and industry.