The popularity of private labels is growing. The value of this sector in the Polish market increased by 19% year-on-year and in 2023 exceeded 50 billion PLN. Additionally, 27% of consumers declare that they intend to buy even more such products within the next six months. The key argument for buyers are competitive prices while maintaining satisfying quality. These findings are from the “Behaviour Change” report developed by Consumer Panel Services GfK.
According to CPS GfK data, the share of private labels in the Polish market in 2023 increased by 1.3 percentage points year-on-year, reaching 22.6%. The rising trend has been consistent for several years, allowing the value of this market in our country to exceed 50 billion PLN. According to the “Behaviour Change” report by CPS GfK, Poles want to buy even more such items. – Every fourth consumer plans to increase their spending on products under private labels. At the same time, only 5% of Poles declare such intentions towards branded products. This is a clear signal to producers that there is space for further dynamic development and continuous increase in demand – says Szymon Mordasiewicz, Managing Director at Consumer Panel Services GfK.
Despite the considerable interest in private labels, Poles are still below the European average – 32% of Europeans plan to buy more such products. Polish buyers are significantly surpassed by the French (49%), Austrians (37%), and Spaniards (42%).
Price Still Reigns Supreme
The main differentiator of private labels is how consumers perceive prices. This is particularly important in times of economic crisis. This is also confirmed by CPS GfK data from the “Behaviour Change” report, according to which nearly half of the buyers (46%) make their choice between branded products and private labels based on financial considerations. However, it is worth noting that this is the lowest score among all Central and Eastern European countries. For comparison – based on their own budget, 63% of Hungarians, 58% of Croatians, or 57% of Bulgarians make this purchasing decision.
– Currently, 36% of Polish households admit that they are dealing with a limited budget – points out Szymon Mordasiewicz. – In a situation where consumers have a choice between two products, both of which meet the need, are satisfying in terms of quality and are at the same price, as many as 57% of them will put the branded product into the basket. Only 18% would choose a private label. If producers want to effectively compete for buyers’ baskets, they must maintain competitive prices. These have a huge significance for consumers – adds the expert from Consumer Panel Services GfK.
The above data come from the 6th edition of the periodic report “Behaviour Change,” which contains information on the moods of consumers from 21 European markets. The survey covered 15,000 respondents and shows what impact social issues have on buyers’ purchasing decisions. The report’s author is Consumer Panel Services GfK, which covers over 100,000 households across the continent.
