Global Executives Survey: Significance of Private Label/Store

Branded Packaging in the FMCG industry

Reference code: PK4440PR

Published: July 2015

Single User Price: US$1950

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Summary

“Significance of Private Label/Store Branded Packaging” is a report published by Canadean with a detailed analysis about

the quality of private label packaging, growth drivers of private label brands and their association with packaging

manufacturers. Additionally, it covers apprehension about retailers and change in market share of private label brands.

Scope

“This report examines global packaging industry executives’ opinions about transformation in market share of private label

products and highlights key factors responsible for their growth. It also evaluates quality of private label packaging on

specific parameters and scenarios and potential collaboration between packaging manufacturers and private label brands.

You can also get access to:

• A quality evaluation for private label packaging: evaluates how the private label packaging has transformed over the last three years

based on specific aspects and parameters

• Collaboration of packaging manufactures with private label brands: examines prospects of packing manufactures working with private

label brands

• Concern assessment and change in market share: determines market share transformation for private label brands and identifies

packaging manufactures apprehension about retailers capability

• Key drivers: identifies factors which are important for the growth of private label brands

• Use of product attributes: ascertains importance for private label packaging to take advantage of product characteristics

• Consumer perception: highlights consumers opinion about private label products and packaging based on various scenarios

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Reasons to buy the report

• Restructure production and distribution plans of private label goods by using the trends highlighted within the report.

• Improve private label packaging by knowing the product attributes which can provide the competitive edge.

• Enhance the quality of private label packaging by understanding the factors which have brought positive changes in quality

levels over the last three years.

• Alter product offerings by following the key factors which are influencing consumers and get a deeper understand of their

opinions regarding private label products.

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Definitions

Asia-Pacific: Includes Asia and Australia.

Rest of the World: Includes the Middle East, Africa, and South America.

Small companies: Companies with annual global revenue of less than US$100

million are termed as small companies.

Medium-sized companies: Companies with annual global revenue ranging

between US$100 million and US$1 billion (both inclusive) are termed as

medium-sized companies.

Large companies: Companies with annual global revenue of more than

US$1 billion are termed as large companies.

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Respondent profile

Company type %

Packaging buyer: Manufacturer of filled packaged

goods (e.g. FMCG, pharmaceutical, tobacco) 14%

Packaging manufacturer or converter 50%

Contract packer 1%

Packaging wholesaler or distributor 3%

Packaging materials or machinery /equipment

suppliers 15%

Packaging related services (e.g. security, design,

advisory, consultancy) 8%

Marketing/Communications Agency (with specific

knowledge of packaging markets) 1%

Packaging trade body 1%

Packaging industry academic or other industry

observer 1%

Government or other public sector organization

involved in the packaging industry 1%

Other 5%

Designation %

CEO / president / MD / board member / C-level executive 16%

Director / VP / SVP 18%

Head of Business Unit 6%

Head of Department 10%

Professional and technical staff (e.g. lawyer, engineer,

architect) 14%

Manager 27%

Other staff 9%

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Respondent profile

Turnover %

Less than US$100 million 48%

US$100 million–US$1 billion 23%

More than US$1 billion 27%

Don’t know 2%

Region %

North America 20%

Europe 53%

Asia-Pacific 20%

Rest of the World 7%

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Growth in private label is driven by xxxx in the xxx and xxx of xxx xxx rather than

xxx of xxx in national brands

How important do you think the following factors have been in the growth of private label/ store own brands in the FMCG

industry in which you operate? (Overall responses)

13%

11%

13%

13%

15%

6%

64%

57%

47%

45%

35%

20%

19%

30%

36%

40%

41%

50%

4%

2%

4%

2%

9%

17% 7%

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

Very good Good Average Poor Very poor

According to survey results, 77% of respondents highlighted that xxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx

xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx. In addition, 68% of industry executives indicated xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx

xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx .

Overall, 60% and 58% of survey respondents noted that xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx

xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxxx xxxx xxxx xxxx .

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65%

55%

51%

48%

43%

31%

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

69%

69%

54%

46%

46%

25%

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

Improvement in quality of xxx xxx is observed more by executives who operate in

the xxxx as compared to those operating in other xxxx

Do you think the quality of private label/ store own brand packaging has improved over the last three years when it comes

to the following aspects in the FMCG industry in which you operate? (Analysis of responses by region who said who said

increased marginally and increased significantly)

87%

80%

79%

66%

47%

43%

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

North America Europe

Asia-Pacific

75%

75%

75%

50%

25%

25%

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

Rest of the World

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xxxx of respondents from xxxx companies indicate to provide xxx for xxx xxx

brands

Do you provide packaging for the following types of FMCG manufacturers in your region of operation? (Analysis of

responses by size of business)

13%

4%

71%

12% 5%

20%

50%

25%

10%

10%

38%

42%

xxxx

xxxx

xxxx

xxxx

Large companies Medium-sized

companies Small companies

Overall, 71%, 50%, and 38% of industry executives from xxxx, xxxx, and xxx companies, respectively, highlighted that they xxxxx xxxx xxxx xxxx xxxx xxxx

xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxx xxxx xxx

xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx

xxxx xxxx xxxx xxxx xxxx xxxxx xxxx xxxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx

xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx .

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Methodology and sample size

Objectives:

This “Hot Topic” report draws on the expertise of Canadean’s exclusive panel of industry executives to provide

the latest thinking about how organizations anticipate packaging to influence private label products. The report

evaluates quality of private label packaging based on key aspects and specific capabilities. In addition, the

report examines prospects of packaging manufacturers association with private label brands and identifies key

drivers for the growth of private label brands in the FMCG industry. The report also analyzes change in market

share of private label products over the last three years.

Sample size:

The research source in this report is based on the surveyed opinions and expectations of 88 global packaging

industry executives in February 2015.

Methodology:

This report is the result of an extensive survey drawn from Canadean’s exclusive

panel of industry executives. These respondents are drawn from the Canadean

Industry Insight Panel, an exclusive industry panel covering over two million

business professionals worldwide. These business communities are made up of

highly qualified professionals who rely on our flagship media brands in their

respective markets, enabling Canadean to access knowledgeable and informed

industry opinion.

Comprehensive desk research was also conducted across packaging industry

sources, with a focus on analyzing packaging distribution based on type of FMCG

manufacturer and assessing concerns for packaging manufactures associated

with branded products manufacturers based on retailers capability to influence

aisles space.

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Table of Contents

Introduction (Slide 5–9)

• Definitions (Slide 5)

• Methodology and sample size (Slide 6)

• Respondent profile (Slide 7–8)

• Canadean’s view (Slide 9)

Private Label - Consumer Expectations and Organizations Strategic Approach (Slide 10–42)

• Alteration in market share of private label brands and prominence of growth affecting factors (Slide 10–15)

• Quality improvement of private label packaging based on specific packaging aspects and viewpoint on consumer opinion (Slide

16–24)

• Quality evaluation and importance of using product features for private label advantage (Slide 25–34)

• Packaging distribution based on FMCG manufacturers classification (Slide 35–37)

• Expectation about packaging manufacturers association with private label brands (Slide 38–42)

Organizations opinion about private label products and impact from packaging perspective (Slide 43)

Appendix (Slide 44)

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List of Figures

Figure 1: Change in private label brands market share over the last three years - Overall (Slide-10)

Figure 2: Change in private label brands market share over the last three years - region (Slide-11)

Figure 3: Change in private label brands market share over the last three years - Size of business (Slide-12)

Figure 4: Significance of growth influencing factors for private label brands - Overall (Slide-13)

Figure 5: Significance of growth influencing factors for private label brands - Region (Slide-14)

Figure 6: Significance of growth influencing factors for private label brands - Size of business (Slide-15)

Figure 7: Opinion on consumer perception - Overall - Consumers have become less brand conscious over the last

three years (Slide-16)

Figure 8: Opinion on consumer perception - Overall - Consumers believe that private label and branded products are

produced in the same factory - it is only the packaging that is different (Slide-17)

Figure 9: Opinion on consumer perception - Region - North America and Europe (Slide-18)

Figure 10: Opinion on consumer perception - Region - Asia-Pacific and Rest of the World (Slide-19)

Figure 11: Opinion on consumer perception - Size of business - Large companies and Medium-sized companies

(Slide-20)

Figure 12: Opinion on consumer perception - Size of business - Small companies (Slide-21)

Figure 13: Enhancement in quality of private label packaging based on key parameters during the last three years -

Overall (Slide-22)

Figure 14: Enhancement in quality of private label packaging based on key parameters during the last three years -

Region (Slide-23)

Figure 15: Enhancement in quality of private label packaging based on key parameters during the last three years -

Size of business (Slide-24)

Figure 16: Significance of leveraging product attributes for private label packaging - Overall (Slide-25)

Figure 17: Significance of leveraging product attributes for private label packaging - Region (Slide-26)

Figure 18: Significance of leveraging product attributes for private label packaging - Size of business (Slide-27)

Figure 19: Significance of leveraging product attributes for private label packaging - Overall - Convenience (Slide-28)

Figure 20: Quality level of private label packaging based on specific packaging aspects - Overall (Slide-29)

Figure 21: Quality level of private label packaging based on specific packaging aspects - Region (Slide-30)

Figure 22: Quality level of private label packaging based on specific packaging aspects - Size of business (Slide-31)

Figure 23: Opinion on consumer perception - Overall - Consumers can be reluctant to serve private label packaged

food and drink to guests on certain occasions (Slide-32)

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List of Figures

Figure 24: Opinion on consumer perception - Overall - Consumers will always prefer branded packaging to non-

branded packaging (Slide-33)

Figure 25: Opinion on consumer perception - Overall - Consumers are fully confident with the quality of private label

groceries (Slide-34)

Figure 26: Packaging share based on type of FMCG manufacturers - Overall (Slide-35)

Figure 27: Packaging share based on type of FMCG manufacturers - Region (Slide-36)

Figure 28: Packaging share based on type of FMCG manufacturers - Size of business (Slide-37)

Figure 29: Prospects of packaging manufacturers association with private label brands over the next three years -

Overall (Slide-38)

Figure 30: Opinion on consumer perception - Region - Consumers believe that private label and branded products are

produced in the same factory - it is only the packaging that is different (Slide-39)

Figure 31: Opinion on consumer perception - Size of business - Consumers believe that private label and branded

products are produced in the same factory - it is only the packaging that is different (Slide-40)

Figure 32: Opinion on consumer perception - Overall - Consumers can be reluctant to serve private label packaged

food and drink to guests on certain occasions (Slide-41)

Figure 33: Opinion on consumer perception - Size of business - Consumers can be reluctant to serve private label

packaged food and drink to guests on certain occasions (Slide-42)

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Appendix

“Consumers’ understanding of craft is limited to non-

existent. It will take a lot of investment to introduce a

craft product now, but over the next five years, once

craft is established globally, it will be relatively easy to

launch craft products in the market.”

“Handmade and craft products seems to be a bit

expensive when compared to the products made

through machine due to the man-hours involved in

making it. Slight price reduction and branding will

improve the performance of craft products.”

About Canadean

Canadean is a full-service business information provider with in-house market research capabilities. We specialize in

analysis across the Consumer Markets Value Chain, covering suppliers, producers, distribution, and consumers.

Canadean’s dedicated research and analysis teams consist of experienced professionals with an industry background in

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approaches, and actionable insights. In addition Canadean has built a network of consultants and specialist researchers

across more than 60 countries, each with in-depth industry experience and expertise enabling us to conduct unique and

insightful research via our trusted business communities.

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