Changes in the relative price of Private Labels versus National Brands impact Private Label share
This week a category (type) perspective: where Private Label became relatively more expensive between 2021 and 2024, more likely to lose share
A focus on all categories
Across all categories and countries, a 10% increase in the Private Label price relative to brands is associated with ~1.2 share points lower Private Label volume share. Between 2014 and 2019 the effect was only ~0.9 share points, pointing to higher price sensitivity in the recent crisis years (R² = 0.11).
A focus on Food
The same pattern holds in Food, but the effect is smaller: a 10% increase in the relative Private Label price is associated with ~0.9 share points lower Private Label share. The pattern is loose here (R² = 0.03).
A focus on Beverages
Beverages are markedly more price-sensitive: a 10% increase in the relative Private Label price is associated with ~2.0 share points lower Private Label share (R² = 0.12).
