There is a big ‘unknown’ hanging over predictions about the post-COVID-19 FMCG landscape. The latest reports suggest that global growth will struggle to bounce back from the lockdowns, and just how long it will take to fully recover is up for debate.
Private Labels grew the most in baskets that have the highest share of Premium brands in Latam: Personal and Home Care. Although private labels have suffered during lockdown, we predict that the economic climate will provide the ideal playground for them to thrive again in the future. A survey of French shoppers in April found that 53% are struggling to pay for groceries, suggesting that many shoppers will look to make savings at the till for the foreseeable future. Furthermore, there is also a huge untapped potential for private label in certain markets—particularly in Asia and Latin America. As lockdowns begin to ease, we predict that private label will begin to rise in these regions.
In contrast with the rest of the world, the COVID-19 crisis has benefited private labels in Colombia – particularly in the personal hygiene and household cleaning categories. Manufacturers’ own brands now hold a 19.1% share of total FMCG value, an increase of 32% on the same period last year.
