Global Retail Brands Special Issue

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SPECIAL ISSUE I SEPTEMBER 2022

t t

Pandemic-influenced changes in shopping behavior are enduring

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PLMA’S 2022 INTERNATIONAL CONSUMER STUDY: Assessing consumers’ post-pandemic behavior

rivate label purchase P is greater now; signs of expansion to come

Online grocery ordering & delivery will continue to grow

t

WILL EUROPEANS EVER SHOP THE SAME?

Product attributes are more important than ever to consumers

www.globalretailmag.com


SEPTEMBER 2022 / SPECIAL ISSUE

Phillip Russo

EDITOR / PUBLISHER phillip@globalretailmag.com

Jacco van Laar

EUROPEAN DIRECTOR jaccovanlaar@globalretailmag.com

Melissa Subatch

CREATIVE DIRECTOR info@melissasubatchdesign.com

Andrew Quinn

DIGITAL DIRECTOR andrew.quinniii@gmail.com

Luisa Colombo

CONTENTS WILL EUROPEANS EVER SHOP THE SAME? PLMA’s 2022 International Consumer Study

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Italian Business Development luisa@globalretailmag.com

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Sabine Geissler

GREENTASTE.IT Italian Business Development s.geissler@greentaste.it CONTRIBUTORS

Perry Seelert

Emerge perry@emergefromthepack.com

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Christopher Durham

Retail Brands Institute cdurham@retailbrandsinstitute.org

Maria Dubuc

Marketing By Design mdubuc@mbdesign.com

Hans Kraak

Kraak Media kraakmedia@gmail.com

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Elena Sullivan

sullivan.elena@gmail.com

Tom Prendergast

PLMA tprendergast@plma.com

Mark H. Cohen

Colloquy Digital mark@colloquy.biz Published, Trademarked and all rights reserved by:

Kent Media

Phillip Russo, Principal 45 Upper Kent Hollow Road Kent, CT 06757 USA Tel. +1 917 743 6711 All rights reserved under the Library of Congress. No part of this publication may be r eproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying and recording, or by any information storage or retrieval system, except as may be expressly permitted in writing by the copyright owner. Opinions expressed by contributors are theirs alone and do not necessarily reflect those of the publisher.

Global Retail Brands is published 4 times a year. Editorial Submissions phillip@globalretailmag.com Advertising Inquiries – EUROPE luisa@globalretailmag.com Advertising Inquiries – AFRICA, AMERICAS, ASIA, AUSTRALIA, MIDDLE EAST phillip@globalretailmag.com Subscription Information

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GLOBAL RETAILphillip@globalretailmag.com BRANDS / SPECIAL ISSUE I SEPTEMBER 2022

Introduction / 4 Private Label Growth / 8 Confidence in Private Label is High / 10 Private Labels Compete to Win / 12 Shoppers Spread Purchases Around / 16 PLMA’s 2022 US Chicago Trade Show / 18 Changes in Meal Consumption / 20 E-Commerce Here to Stay / 24 Environment a Top Concern / 28 Healthy Product Attributes are Desirable / 32


Retailers & suppliers, it’s a great time to be in the U.S. store brands business. American consumers are seeking products that offer healthier choices, on-trend ingredients, enviro-friendly features and inflation-fighting value. That spells opportunity for store brands. Over the first eight months of 2022, sales increased by 9.4%; national brands were up only 5.4%. Join us at the PLMA Show to expand your business.

For more information, contact PLMA by phone at +1 212 972 3131 or e-mail info@plma.com or visit www.plma.com.

PLMA’s 2022 PRIVATE LABEL TRADE SHOW 13 - 15 November • Chicago Presented by the Private Label Manufacturers Association

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2022 INTERNATIONAL CONSUMER STUDY

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SURVEY REPORT BY

Judith Kolenburg, Joe Azzinaro, PLMA

Will Europeans Ever Shop the Same ACCORDING TO A NEW STUDY FROM PLMA INTERNATIONAL COUNCIL, the answer is Europeans will never shop the same for groceries. The survey asserts that the pandemic experience brought significant changes in how consumers consider and purchase food and nonfood products for their household and that many of the changes will endure. We found this study so revelatory, we decided to devote an entire issue to the study and its implications, including:

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rivate label purchase is greater now; P signs of expansion to come

4

Pandemic-influenced changes in shopping behavior are enduring

4

Online grocery ordering & delivery will continue to grow

4 Product attributes are more important than ever to consumers

www.globalretailmag.com

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Will Europeans Ever Shop the Same

Among its top findings, the consumption of private label is now significantly higher than it was two years ago and projects to increase even more going forward. The clearest change is the surge in e-commerce. While its recent growth will likely slow, the convenient option of home ordering and delivery has become a permanent part of the retail infrastructure. But it will require consistent refinement by retailers and their third-party partners, suggested respondents in the survey. In what is perhaps the most important shift, shoppers across Europe are scrutinizing grocery products more holistically, with greater discernment, knowledge, and concern for their impact on personal health as well as societal welfare. And this new level of evaluation has become an essential factor in their purchase decisions. “The purpose of this study, ‘Will Europeans Ever Shop the Same? Assessing consumers’ post-pandemic behavior,’ is to provide retailers and their own brand suppliers with the latest insights on European consumers so they can cooperatively develop a road map for private label development and marketing in the post-pandemic environment” said Peggy Davies, PLMA president.

The purpose of this study, ‘Will Europeans Ever Shop the

The online survey collected responses to more than fifty questions, many with multiple parts, from 6,500 participants equally spread across eight countries -- France, Germany, Italy, the Netherlands, Poland, Spain, Sweden, and the United Kingdom.

Same? Assessing consumers’ post-pandemic behavior,’ is to provide retailers and their own brand suppliers with the latest insights on European consumers so they can cooperatively develop a road map for private label development and marketing in the post-pandemic environment

Peggy Davies PLMA president

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GLOBAL RETAIL BRANDS / SPECIAL ISSUE I SEPTEMBER 2022


2022 INTERNATIONAL CONSUMER STUDY

®

DEMO GRAPHIC

Demographically, the survey was all-encompassing. Generationally, the respondents were divided as follows:

It was conducted in April 2022 exclusively for PLMA International by Surveylab, a leader in customized online research. Each respondent self-identified as the primary grocery shopper for their household. Particular focus was placed on asking respondents how often and where they conducted their grocery shopping before and during the pandemic, what kinds of food and non-food products they bought; the qualities, ingredients, and attributes they most valued in the goods they purchased; and their attitudes towards brands, particularly private label. Importantly, they were also asked how their shopping habits and preferences have been permanently changed as a result of the pandemic experience.

18% Generation Z (born 1997-present) 32% Millennials (born 1981-1996) 31% Generation X (born 1965-1980) 19% Baby Boomers (born 1946-1964) Only those 18 years and older were allowed to participate.

HOUSEHOLDS 21% two or more children under 18 20% one child 59% no children 52% two adults 21% one adult 16% three adults 11% four or more adults

INCOME 35% medium income 32% low income 25% high income

51% female 49% male

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Private Label Growth, Now & In The Future Private label is more popular than ever, as measured by consumers’ reported patronage of the products now, as well as how they compare them so favorably to manufacturers brands in the marketplace.

Two findings underscore this trend. Nearly three of ten in the study said they buy “more” of their favorite supermarket’s own brand products now compared to before the pandemic. Importantly, the youngest participants in the PLMA International survey – Gen Z and Millennials – increased their own label buying the greatest, as 32% of respondents in these generations indicated they buy now “more” own brands, compared with 25% of Gen X and 22% of Boomers who are now purchasing more. The number of all in the study who reported buying “less” is negligible.

32%

Gen Z and Millennials buy now “more” own brands

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GLOBAL RETAIL BRANDS / SPECIAL ISSUE I SEPTEMBER 2022


2022 INTERNATIONAL CONSUMER STUDY

Future prospects for own brand sales look good as well Economic challenges in Europe over the next few years will likely increase own brand sales even more. Forty percent in the study said that, taking into consideration rising prices due to inflation, over the next two years they expect to buy “more” own brand products than they do now. The highest response was in the UK (48% said they expect to buy “more”) and in Italy and Spain (both at 43%).

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40%

of respondents expect to buy “more” own brand products over the next two years

Supermarket own brands comprise a big portion of consumers’ regular shopping baskets. Three in ten said that, on average, when they purchase groceries for their household more than half of their basket is comprised of supermarket own brands. Another 30% report that when they typically shop at least one-third to one half of their grocery order is made up of own brand products.

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Confidence in private label is high Across the store, consumers give their supermarket’s own brand products high marks. When asked to express the level of confidence they have with private label products in a variety of food and non-food categories, they responded as follows: toilet/ kitchen paper (51% said they were “very confident” in their supermarket’s own brands”), fresh products (47% were “very confident”), shelf-stable food (43%), cleaning products (43%), frozen food (42%), beverages (40%), ready meals (31%), and cosmetics (27%). Among countries, Dutch consumers expressed the highest degree of confidence in own brands across the board: toilet/kitchen paper (64% were “very confident”), fresh, 62%; cleaning products, 57%; frozen, 55%; beverages, 53%; ready meals, 44%; and cosmetics, 37%.

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GLOBAL RETAIL BRANDS / SPECIAL ISSUE I SEPTEMBER 2022


Confidence in a product relies on the perception of quality, value and performance, among other qualities. What level of confidence do you have in your supermarket’s own brand for the following? I am “very confident” in supermarkets’ own brand products in ....

ALL COUNTRIES TOTAL

47% Fresh Products 42% Frozen Food 40% Beverages 31% Ready Meals

Confidence in a product relies on the perception of quality, value and performance, among other qualities. What level of confidence do you have in your supermarket’s own brand for the following? I am “very confident” in supermarkets’ own brand products in .... ALL COUNTRIES TOTAL

51% T oilet/ Kitchen Paper 43% Cleaning Products 27% Cosmetics

When asked about a number of health-oriented product attributes and features, consumers expressed strong satisfaction with the availability and variety of their main supermarket’s own brands when it comes to those qualities. For example, they rated their favorite store’s own brands highly on healthy (68% said the products were “good to excellent” on availability and variety), natural food (63%), sustainable packaging (59%), organic (58%), plant-based (56%), free from (53%), and vegan/vegetarian (50%). On other qualities and characteristics, respondents gave their supermarkets’ own brands equally strong endorsements. For example, 74% said the products were “good to excellent” on value for money. Other high marks were for low price (70%), national/regional variety (65%) easy to recycle (62%) and natural cosmetics and detergents (53%).

How do you rate your main supermarket’s own brands for availability and variety in the following products?

“GOOD TO EXCELLENT”

74%

VALUE FOR MONEY

7o% LOW PRICED

62%

EASY TO RECYCLE

53%

NATURAL COSMETICS/ DETERGENTS

65% NATIONAL/REGIONAL www.globalretailmag.com

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Private Labels Compete to Win

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GLOBAL RETAIL BRANDS / SPECIAL ISSUE I SEPTEMBER 2022


2022 INTERNATIONAL CONSUMER STUDY

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In general, how do you compare your supermarket’s own brand products to national brands?

PRIVATE LABEL VS NATIONAL BRANDS Clearly, own brands have become “brands” in most consumers’ minds. When asked to compare private label with manufacturers’ brands, more than 60% consider the products equal, while one in five compare their supermarket’s own brand products “more” or “much more” favorably to national brand alternatives.

Much for favorably More favorably The same Less favorably Much less favorably

In general, how has your confidence in retailers’ own brands changed compared to before the pandemic? Consumers expressed an increase in confidence, or the perception of quality, value and performance, in retailer’s own brands when compared to how they felt before the pandemic. Some 17% percent have “more” or “much more” confidence in private label now compared to two years ago. Three of four said their confidence was unchanged over the period.

9%

National brands received lower marks. Three percent of respondents said they now have “much more confidence” in national brands compared to before the pandemic, and one in ten said they have “more confidence.” The overwhelming majority, 78%, offered that their confidence in national brands was the “same.” Ten percent expressed “less confidence” in national brands.

Much more confidence

More confidence

The same

Less confidence

Much less confidence

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PRIVATE LABELS COMPETE TO WIN

2 PRICE HAS GROWN IN IMPORTANCE Accruing to the benefit of private label, the price of products has become increasingly important today. More than half in the study said the “price” of products is now “more” or “much more” important to them than it was before the pandemic. Among countries, those expressing the most concern with price were respondents in Poland (60%), followed by Italy (58%), Spain (57%), UK (53%), France (48%), Germany (46%), Sweden and the Netherlands (42%).

The price of products is “more”or “much more” important for me now than before the pandemic.

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2022 INTERNATIONAL CONSUMER STUDY

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OPPORTUNITIES TO PROMOTE PRIVATE LABEL AT POP There’s also ample opportunity at the point of purchase for a retailer to persuade a shopper to buy its private label product. When grocery shopping in-store and looking for a product on the shelf, most respondents are careful: 66% usually compare prices and look for a bargain, 39% look to see what other brands of the product are available, 26% examine the packaging of other brands of the product and 19% look for innovations in the desired product. Others are more decisive. Without hesitation, 20% select the supermarket’s own brand and 17% the national brand.

When grocery shopping in-store, and you are looking for a product on the shelf, what do you usually do?

66%

39%

26%

Compare prices / look for a bargain

Look to see what other brands of the product are available

Examine the packaging of other brands of the product

20%

19%

17%

Select the supermarket's own brand without hesitation

Look for innovations in the desired product

Select the national brand without hesitation

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Shoppers Spread Grocery Purchases Around alf of consumers patronize three or more different supermarkets and online grocery sites per month. A little more than one quarter said they rely on only one source, and another quarter shop at two. Among country findings, half of Swedes use only one store or website per month, a third use three or more; one in ten Germans visit one store/site only, seven of ten use three or more and two of ten go to five or more stores/sites.

On average, how many different supermarkets and online grocery sites do you use per month?

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2022 INTERNATIONAL CONSUMER STUDY

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Which of the following types of stores do you use for your household’s regular grocery shopping?

82%

41%

SUPERMARKET

35%

CONVENIENCE STORE

HYPERMARKET

32% 17% ONLINE

SPECIALIST STORE

39% DISCOUNTER

13%

DIRECT-FROM FARMER

Supermarkets were the overwhelming choice as the favorite place to shop. Eight in ten participants identified supermarkets as the type of stores where they conducted their household's regular grocery shopping. Runner up were hypermarkets at 41%, followed by discounters (39%), local/convenience stores (35%), online sites (32%), specialty stores (17%), and direct-from-farmer/farmer shops (13%).

Which of the stores you selected is your main store for grocery shopping?

Supermarkets also came out on top when respondents identified their “main” store for grocery shopping. More than half in the study said supermarkets were their “main” choice, followed by hypermarkets (18%), discounters (14%), local/convenience store (6%), and online sites (5%). Poland is the only of the eight countries represented in the survey where discounters are the first choice of shoppers as their main channel.

Which of the stores you selected is your main store for grocery shopping? Top 4 Channel by country

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Supply Store Brands? Then PLMA’s 2022 US Private Label Trade Show In Chicago Is Where You Should Be This November

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GLOBAL RETAIL BRANDS / SPECIAL ISSUE I SEPTEMBER 2022

It’s a great time to be in the US store brands business. Sales are way up, and consumers are back in charge, looking for high quality products that offer on-trend attributes, innovative flavors and ingredients, and inflation-fighting value. Food products with a strong national or regional character or orientation are well-represented on their list of favorites. As a result, US shoppers are increasingly turning to store brands. Over the first eight months of 2022, dollar sales increased by 9.4% vs the same period a year ago, according to IRI. National brands were up only 5.4%. Store brands also outperformed national brands in terms of unit sales for the eight months. This performance follows a record USD 200 billion in store brand sales last year, when the products accounted for one of every five sold across all retail channels. Based on current PLMA projections, by the end of 2022, annual store brand dollar sales in the US will have increased by 36% over a five-year period.


“US consumers have maintained their ability to spend in the face of record inflation, persistent supply chain issues and geopolitical unrest by adapting and shopping smarter, a trend that always accrues to store brands’ benefit,” explains Peggy Davies, PLMA president. “If you supply store brand products, particularly food items with a clear national or regional identity, PLMA’s 2022 US Private Label Trade Show in Chicago is where you should be this November.”

by the end of 2022, annual store brand dollar sales in the US will have increased by 36% over a five-year period.

Country pavilions offer ‘authentic’ ethnic fare US consumers prize PLMA’s Show, 13-15 November, which is themed “Consumers Are Back in Charge,” will be held at the Rosemont Convention Center, Chicago. The Show floor presents an opportunity for suppliers to meet thousands of buyers from North American supermarkets, drug chains, mass merchandisers, supercenters, specialty retailers, online retailers, dollar stores, convenience stores, club stores, and military exchanges; as well as importers and exporters, manufacturers, consultants, sales agents and packaging and design experts, among others. Health and wellness are paramount concerns for post-pandemic consumers who have become better informed and more demanding in terms of what they buy due to evolving needs and tastes; adherence to new types of diet and health regimens; greater awareness of the adverse effects of allergens and other unwanted ingredients; and the impact on the environment of the products they buy, use and discard. As a result, product attributes, qualities and features have never been more important. “The power of product attribution,” NielsenIQ calls it, advising retailers to “dive into attributes to find growth.” “Whatever the size of your company, the PLMA Show will connect you with retail executives who are responsiblefor their chain’s store brand purchasing,” adds Davies. “Come to Chicago and build your business by finding great US retail partners.” This November, hundreds of store brand suppliers from around the world, many participating in national pavilions from countries throughout Europe, Latin America and Asia, will be exhibiting in Chicago. To reserve space, call +1 212 972-3131 or email exhibit@plma.com.

Come to Chicago and build your business by finding great US retail partners.

Retailers looking for authentic ethnic and international food products to put their store brand on will find them in quality and quantity among the exhibitors in the several dozen country pavilions at the 2022 PLMA Private Label Trade Show. Authenticity is an important yet elusive attribute that US consumers prize in food products with an international flair and one they will pay for. A recent PLMA survey in the US said that shoppers who value the “authenticity” of international products are more likely to accept higher prices for those products than those respondents who did not view authenticity as an appeal. The survey also found a large proportion of US authenticity-seekers are willing to buy an international food product for the first time at their favorite store, want their retailer to offer more international food options, and are more aware of brands and, in particular, of store brands that include international food options. Authenticity is an important way for retailers to communicate the value of their international store brands and the country pavilions at the PLMA Show provide a wide array of products from which to choose.

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CHANGES IN MEAL CONSUMPTION

36%

of Gen Z respondents prepares more meals at home than they did before the pandemic

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2022 INTERNATIONAL CONSUMER STUDY

COOKING AT HOME Cooking meals at home have increased since before the pandemic.

Thirty percent of respondents now prepare meals more at home than they did before the pandemic. By country the numbers are in the UK 35%, France 28%, Germany 25%, Italy 37%, The Netherlands 19%, Poland 35%, Spain 33%, and Sweden 25%.

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30%

of respondents prepare meals more at home than they did before the pandemic.

How often do you prepare meals at home now compared to before the pandemic “(Much) more often”

Gen Z respondents increased their home cooking the most. Some 36% now prepares more meals at home than they did before the pandemic, followed by Millennials (34%), Gen X (27%) and Boomers (22%)

How often do you prepare meals at home now compared to before the pandemic “(Much) more often”

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CHANGES IN MEAL CONSUMPTION

On average, how many regular sit-down meals do you have per day?

SIT-DOWN MEALS Three-fourths of respondents sit down regularly to 2-3 meals per day, 13% have four to five sit down meals and 11% sit down for just one meal per day. In the UK, 57% sits down for 2-3 meals per day while one in three only eats one sit-down meal. In Poland, almost one in four eat 4-5 sit down meals a day.

On average, how many meals do you consume on-the-go per week?

ON-THE-GO EATING At the same time, on-the-go meals are becoming more popular. A quarter of respondents consume three or more meals per week on-the-go. Nearly 55% consume one or more meals on-the-go. Overall, nearly half do not consume any meal on-the-go at all, and consumers in the Netherlands (62%) and France (60%) have the highest percentage of consumers who don’t consume

26%

such meals. On-the-go eating is most popular among Gen Z, as 39% of them consume three or more meals per week on the go, compared to 34% of Millennials, 20% of Gen X and 9% of Boomers.

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GLOBAL RETAIL BRANDS / SPECIAL ISSUE I SEPTEMBER 2022


Retailers: See the world, come to Chicago. Products with a strong international character are popular among American consumers, whose taste for new cuisines has been influenced by TV shows, celebrity chefs, travel, restaurants and gourmet and specialty stores. Store brands have benefited from this trend. Shoppers in large numbers are aware of international products in their favorite store; are willing to try them for the first time; and want more on shelves. You don’t have to cross the pond to find great international store brands. They’ll be displayed at hundreds of booths in national pavilions at PLMA’s Private Label Trade Show. They will join more than 1,000 exhibitors from the U.S. too.

• AUSTRALIA • BELGIUM • BRAZIL • CANADA • CHILE • CHINA

• COLOMBIA • DENMARK • FRANCE • GREECE • HOLLAND • ISRAEL

• ITALY • JORDAN • KOSOVO • LITHUANIA • PERU • SERBIA

• SOUTH KOREA • SPAIN • THAILAND • TURKEY • UNITED KINGDOM • URUGUAY

For more information, call +1 212 972-3131 or e-mail info@plma.com.

PLMA’s 2022 PRIVATE LABEL TRADE SHOW November 13-15 • Chicago Presented by the Private Label Manufacturers Association

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2022 INTERNATIONAL CONSUMER STUDY

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E-commerce is here to stay

Across Europe, there’s a new consumer walking the aisle or searching online for their household’s groceries. Their shopping habits and purchase preferences have been permanently changed as a result of the pandemic experience. E-commerce may be the biggest beneficiary of those changes. While, not surprisingly, supermarkets were the overwhelming choice of respondents in the PLMA International survey as the main store for grocery shopping, some 5% indicated that online sites were their main source. Indeed, in response to a related question, one third said that online sites were among the types of stores where they conducted at least some of their grocery shopping. Consumers reported that before the pandemic about 80% of their grocery shopping was conducted in a brick-and-mortar store, the figure today is 74%. Before the pandemic, grocery spend online was 22%, versus 28% today. Over the next two years, 26% expect to shop online “more” or “much more” often for their groceries.

How much of your grocery shopping is conducted in-store versus online, now and before the pandemic?

How much of your grocery shopping is conducted online today?

29% Gen Z

31%

millennialS

26% 22% GEN X

BOOMERS

28% ALL

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E-commerce is here to staY

Growth in online spending will be driven by the youngest consumers, Gen Z and Millennials. One in three in those generations say they expect to spend “more” or “much more” online over the next two years, compared to about one in five of older Gen X and Boomers.

Over the next two years, how oftern do you expect to shop online for groceries

MUCH MORE OFTEN

34% Gen Z

32%

millennialS

15% of respondents use meal box or recipe box delivery

26

21% GEN X

15% BOOMERS

26% ALL

Consumers are methodical when shopping for groceries online. Some 28% look at suggested cheaper alternatives of the item they picked, 25% work from a list of previously ordered items and go from there, 25% type in product description and go from there, 16% type in the supermarket’s own brand and product description, 15% type in national brand and product description, and 14% look at the “people often also order this product” promo alongside the item they want. Looking at online services, 15% of respondents use meal box or recipe box delivery, a growth of five points compared to before the pandemic. The youngest consumers are the heaviest users, there is less use in older generations: only 5% of boomers use meal box delivery, 10% of Gen X and 22% of millennials and one in four Gen Z. For quick delivery, 9% of boomers uses the service and 31% of Gen Z do.

GLOBAL RETAIL BRANDS / SPECIAL ISSUE I SEPTEMBER 2022


2022 INTERNATIONAL CONSUMER STUDY

What really got a boost during the pandemic is online ordering at supermarkets. Home delivery by supermarkets grew by 15 points. Supermarkets’ click and collect grew by 10% among all respondents.

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Supermarkets ’ click and collect grew by

There is room to grow with greater consumer education on e-services. An overwhelming number in the survey simply do not know about such services. Two of three do not know quick delivery and over three of four do not know meal box delivery, while half don’t know about supermarket delivery and six in ten are unaware of the click and collect method. Not surprisingly, among generations, fewer than one in five Gen Z and Millennials say they have never shopped for groceries online while one third of Gen X and half of Boomers say they never have.

10%

Do you use any of the following services currently, and did you use these services before the pandemic?

I am currently using I used it before the pandemic Do not use/know

Quick delivery service

Meal box delivery

Supermarkets’ home delivery

Supermarkets’ click-and-collect

I currently use “Meal box Delivery”

I currently use “Quick Delivery”

25%

22%

31%

29%

10%

5%

17%

9%

Gen Z

GEN X

15% ALL

millennialS

BOOMERS

Gen Z

GEN X

millennialS

BOOMERS

22% ALL

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Environment is a top concern

Another elevated consumer concern is the environmental and social impact of products – their manufacture, marketing, use, and disposal. From sustainability to animal welfare, from packaging to ingredient sourcing, consumers are more mindful of the costs and permanent damage incurred by how some products are made and brought to market. And their purchase decisions reflect that concern.

3 in 10 people buy more sustainable products than they did two years ago 28

GLOBAL RETAIL BRANDS / SPECIAL ISSUE I SEPTEMBER 2022

During the pandemic, consumer concern about “sustainability” increased. More than one third in the study said that sustainability of products is “more” or “much more” important to them now than it was before the pandemic. For Gen Z, sustainability concern has grown most (38%), closely followed by Millennials (37%), Gen X (33%) and Boomers (32%). Overall, three in ten buy more sustainable products than they did two years ago.


2022 INTERNATIONAL CONSUMER STUDY

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SUSTAINABLE Are the following product features or attributes more or less important to you now than they were before the pandemic?

Compared to before the pandemic

VS

SUSTAINABLE PRODUCTS are (much) more important now

I buy more now

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Environment is a top concern

One in four of consumers are “willing” or “very willing” to pay more for sustainable products now than before the pandemic. Gen Z, whose concern over sustainability has grown most, and who buys more of these products is also most willing among age cohorts to pay more for them: One in three 33% says they are willing to pay more. The older the generation, the less willing they are to pay more for sustainability: 30% of Millennials, 24% of Gen X, and 21% of Boomers are willing.

SUSTAINABLE How willing are you to PAY MORE for these products features now than before the pandemic

I am (very) willing to pay more:

33% 30% GEN Z

MILLENNIALS

24% 21% 27%

GEN X

Are the following product features or attributes more or less important to you now than they were before the pandemic?

(Much) more important

BOOMERS

ALL

Some 38% of respondents said they think that ecofriendly packaging is “more” or “much more” important to them now than it was two years ago. And one third of consumers say animal welfare is “much” or “much more” important to them now than it was before the pandemic.

27%

of respondents are very willing to pay more for sustainable products 30

GLOBAL RETAIL BRANDS / SPECIAL ISSUE I SEPTEMBER 2022


In 2023, the World Will Again Come to Amsterdam PLMA’s “World of Private Label” International Trade Show RAI Exhibition Centre • Amsterdam, The Netherlands 23 - 24 May 2023 www.plmainternational.com


Healthy Product Attributes are Desirable How often do you pay attention to health or enviromental labels/claims on products now than before the pandemic? ey among consumers’ heightened expectations are value-added health and wellness benefits. Even commodity products are expected to deliver more now when it comes to good nutrition and personal wellbeing. Taste, performance, safety, and quality continue as important starting points, but “what more can this product do for my family’s health and welfare?” has become the new paradigm.

56%

THE SAME

4%

MUCH LESS OFTEN

32

40%

MUCH MORE OFTEN

GLOBAL RETAIL BRANDS / SPECIAL ISSUE I SEPTEMBER 2022

Consumers are more aware of labels and claims. For almost half in the study, “healthy” is “more” or “much more” important to them in products now than it was before the pandemic. One in three said they are now more willing to pay extra for products that offer a healthy attribute.


2022 INTERNATIONAL CONSUMER STUDY The healthy aspect is embedded in consumers’ wish for products that are low in fat, salt, and sugar: 37% said these types of products are “more” or “much more” important to them than they were two years ago. The multi-year health crisis also fueled the wish to know more about where products come from. One third now think it is “more” or “much more” important to them to be able to read clear origin labeling on products.

Are healthy product features or attributes more or less important to you now than they were before the pandemic?

®

49%

THE SAME

45%

6%

MUCH MORE IMPORTANT

MUCH LESS IMPORTANT

51%

THE SAME

How willing are you to pay more for healthy product features now than before the pandemic?

16%

VERY UNWILLING TO PAY MORE

33%

VERY WILLING TO PAY MORE

57%

THE SAME NO CHANGE

Are low in fat/sugar/salt product features or attributes more or less important to you now than they were before the pandemic?

The pandemic also gave a big push to local products. Some 36% of consumers think that national/regional products are “more” or “much more” important to them now than they were before the pandemic. And 30% say they buy more national/regional products now than they did two years ago.

9%

MUCH LESS IMPORTANT

34%

MUCH MORE IMPORTANT

In addition to the origin of the products, the pandemic also motivated consumers to favor products without additives. Some 36% say they find this attribute “more” or “much more” important, and 28% buy more natural products than they did two years ago.

www.globalretailmag.com

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