Conference underlines importance of private label sector

By Katie Nichol

- Last updated on GMT

Related tags Private label Cosmetics

The ‘World of Private Label’ tradeshow, to be held in Amsterdam on 18 and 19 May, underlines the importance of this retail category in an increasingly competitive market environment.

Organised by the Private Label Manufacturers Association (PLMA), the 2010 edition of the show is set to be the biggest ever, with more than 3,200 exhibitors, and manufacturers from 70 countries showcasing their new product and packaging innovations.

A seminar taking place the day before the event aims to highlight the importance of private label from a variety of perspectives. Presentations for key speakers will focus on company strategies, emerging trends, and a proposed EU study examining the impact of retailer brands on small and medium enterprises.

Private label growing in cosmetics and personal care

Although private label in beauty and personal care has traditionally been low, as consumers associated branded products with better quality, this is beginning to change due to changes in retailing and consumer spending habits, according to Euromonitor International.

The market researcher’s recent report, ‘The Changing Face of Private Label Beauty and Personal Care’ noted that beauty and personal care held a 2 per cent value share of the global private label market in 2004, which is expected to rise to 4 per cent in 2012.

Germany best market for private label

It was stated that the most successful market for private label is Western Europe, as the share of beauty sales attributable to private label grew from 5 per cent in 2004 to 6 per cent in 2009.

Germany was identified as the country where private label does best, followed by Austria, Switzerland and Spain.

The natural and organic cosmetics and personal care market in Germany is significant, and it is no surprise that private label organic products are increasing in popularity and proliferation, both in this country and on a global basis.

According to Euromonitor, one of the best-selling natural personal care ranges in Germany is private label range Alverde, from the drugstore chain Drogeriemarkt.

Euromonitor identified organic and naturally-positioned private label products as a long term growth driver in private label beauty. One of the reasons for this is that companies can charge ‘significantly more’ for private label than they could otherwise justify, the market researcher stated.

For more information about the PLMA event, please click here.

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