PLMA's World of Private Label: 2023 Show Preview
The Private Label Manufacturers Association (PLMA) and its member organizations will descend on The Netherlands in May for its 2023 “World of Private Label” International Trade Show.
Held at the RAI Exhibition Centre in Amsterdam from May 23-24, the event will feature fresh, frozen and refrigerated foods, dry grocery, and beverages as well as nonfood categories, including cosmetics, health and beauty, household and kitchen, auto aftercare, garden, and housewares & DIY.
According to PLMA, private label now accounts for more than 40% of all products sold in seven European countries and for more than 30% in another nine countries in Europe.
The show will also include a special seminar section featuring industry experts. Speakers include Kayleigh Meister, Analytical Team Lead at NielsenIQ, Servé Muijres, Retail Consultant Shopper at GFK Netherlands and Arjan Both, Senior Vice President Food Sourcing at Walmart.
Recently, Store Brands spoke with PLMA Vice President Anthony Aloia who offered insight into the show and what attendees can expect.
STORE BRANDS: How will this year’s event differ from previous Amsterdam shows?
ANTHONY ALOIA: Last year, COVID-19 was a lingering factor that kept some exhibitors home. This May, at the 2023 PLMA Amsterdam Show, an additional hall will be opened to accommodate the strong demand for booth space from exhibitors from more countries than ever. We’re expecting a record number of visitors, too.
SB: Is there an estimate of how many exhibitors are expected to attend yet?
ALOIA: The show has been sold-out for many months. There will be more than 2,600 exhibiting companies representing 4,400+ booths from 70 countries. Products on display will include food, snacks, beverages and fresh, frozen and refrigerated goods. Nonfood exhibitors will be presenting baby care, health & beauty, household, kitchenware and general merchandise.
SB: What does the increased penetration of private label in Europe indicate for U.S. retailers? Could Europe be the blueprint for America in this sense?
ALOIA: The European model is a powerful example. Private label sales in Europe grew to a total of—302 billion Euros ($330.75 billion) in 2022, reaching a value share of 37% of the total global market, based on figures compiled by NielsenIQ for PLMA’s 2023 International Private Label Yearbook.
Countries with the highest sales share include Switzerland (52%), The Netherlands (44%), Spain (43%), United Kingdom (43%), Germany (40%), Portugal (39%) and Belgium (38%). Large retail chains there such as Carrefour, Tesco, Rewe, Migros, Aldi and others, emphasize their store brand products with innovative and sustainable packaging, fresh ingredients, quality convenience meals and at value prices. These private label trends and growth are penetrating Eastern Europe, too.
On this side of the Atlantic, American retailing is resilient. Store brands are an important strategy for chains, where they can quickly adapt to consumer shopping trends and the changing demographics in the United States. Whether it’s premium or ethnically authentic or every day private label, quality and innovation will drive store brand penetration.
U.S. private label has shown tremendous growth, reaching nearly $230 billion in sales last year and continues to outpace the national brands this year. Store brand dollar share rose to 19.6% and unit share advanced to 21.1% through this first quarter. The industry is well-positioned for expansion and can reach higher private label penetration as well.
Store brands are pervasive across multiple retail channels and expanding into more and more categories. For example, Kroger continues to invest in its own healthy lifestyle brands and spreading its e-commerce delivery into new markets. European-owned chains such as Aldi and Lidl, where their business models are based on private label products, are opening hundreds and hundreds of stores in the U.S., and new online-only retailers, such as Thrive Market, are launching with a private label-first approach.
Experts in both the U.S. and Europe agree the private brands phenomenon has never been greater than it is today. When you look at the level of exhibitor and visitor participation in both the PLMA Amsterdam and Chicago trade shows, there’s no denying store brands are on a growth trajectory.