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A new study from M&M Planet Retail predicts that while private label products now account for 21 percent of global food sales, they are expected to grow to 30 percent by 2020 – a 50 percent increase.

The report says that “while growth in the world’s most saturated markets, such as North America and Western Europe, is gradually slowing down, the fastest-growing markets for these products are mostly emerging economies, including Poland, the Philippines, the Czech Republic, Hungary and Thailand.”

Some of this growth can be traced to categories not generally thought of as being private label-friendly. “Non-foods are a particularly interesting trend for global private brands,” according to the report, “simply because product requirements are more comparable internationally for television sets, radios, shoes etc. than for food and drinks, which are more localized.”

Indeed, the report says that “losing market share to private labels is now a key problem faced by brand manufacturers in developed retail markets, not least as a result of the strong price differential, with private label items around one third cheaper than their branded counterparts.”
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