IRI’s latest Consumer Spending Tracker, which analyses trends during the coronavirus outbreak, shows that large FMCG manufacturers are continuing to lose share to smaller manufacturers and private label.
Slide 26 of the report shows the % share of total store sales held by manufacturers in key developed market fell from 47% before the crisis to 46.2% now, with private label making the biggest gains.
A number of other studies have shown private label making gains during the crisis as shoppers stocked up on products during the first stages of the outbreak. Some branded manufacturers also faced disruption to their supply chains, which caused stock issues and led to consumers picking up supermarket brands.
IRI’s research, covering the UK, France, Italy, Germany, Spain, US, New Zealand, Greece and the Netherlands, also shows consumers are spending less in non-edible categories, particularly cosmetics. However, they are spending more in edibles, including dairy, frozen food, packaged food and alcohol.
E-commerce also continues to show strong growth as consumers shift their purchasing patterns from in-store to online.
The full IRI report can be downloaded here (PDF)
NAM Implications:
- It could be anticipated that the own-label changes could be irreversible.
- (given retailer support, control over supply/quality and availability)
- However, large manufacturers that continue advertising and always deliver ‘more than it says on the tin’ should regain brand share.
