GLOBAL INDUSTRY SCENARIO
“Private-label market share has reached nearly 25% of unit sales and is expanding faster than national brands.”
Consumers spend over $725 billion on packaged goods each year, of which private label sales account for
about $120 billion in sales. Over the past 25 years, private label products have significantly increased their
market share and now account for around 18% of the country's CPG sector.
With customer awareness and acceptability increase in private labelling industry is expected to grow in an
upward trajectory in the foreseeable future.
Retailers change the design, pricing, merchandise, and distribution of private-label brands by studying
customer’s habits and fashion trends. These brands now acquire a larger shelf space than the other brands in
supermarkets or hypermarkets.
A product sold under a retailer's own brand name is known as a private label product because it was developed by athird party. Everything related to the product or items is under the retailer's control. That covers all aspects, such as the product's specifications and packaging. A contractor or a third-party manufacturer creates a private-label product, which is then sold under the retailer's brand.
The goods that are marketed and sold by merchants under their own trademark, although they are actually made by a different company are known as White labels. White labeling occurs when an item's manufacturer uses the branding requested by the purchaser, or marketer, instead of its own.
Contract manufacturing is a business model where a company hires a manufacturer to produce its products or components. It is an outsourcing method for producing products by taking advantage of the resources and expertise of an experienced manufacturer for the benefit of the contracting company.