SYDNEY: Sales of own-label grocery products are set to increase rapidly in Asia Pacific during the next four years, Datamonitor has predicted.
Figures from the research firm suggest food store brands will generate revenues of A$24.7bn ($25.1bn; €17.9bn; £15.4bn) in Asia Pacific by 2014, compared with A$18bn today.
On this date, soft drinks produced directly by retailers should be worth A$11.2bn, measured against A$580m regarding alcoholic beverages, and A$370m concerning household goods.
"Consumer perceptions are evolving and no longer is there an overwhelmingly 'snobbish' mentality towards supermarket brands," Mark Whalley, a Datamonitor analyst, told.
"Although famous-name brands still dominate the market in consumer packaged goods, they need to consider private labels as serious competition both now and in the future."
"With the amount consumers spend on private label competition is set to increase at an unprecedented rate as brands work hard to differentiate their products from private labels."
The company reported around half of the region's shoppers currently choose specific chains based on the available private label offerings.
Over two-thirds of customers also believe such goods provide at least an equivalent standard to national brands, and another 50% stated the quality levels between these variants is the same.
Indeed, 27% of individuals questioned by Datamonitor agreed own-label lines are actually superior to big-name alternatives.
"Private label is no longer about offering consumers the cheapest product; instead it is about offering value," said Whalley.
"Consumers won't just buy the lowest-priced item on the shelf - they're looking for products that deliver on their promises and exceed expectations; and this is something that private label has been very successful in doing."
Data sourced from Marketing Magazine Australia; additional content by Warc staff