Private Label Turnover Up 21% Compared to Last Year

Turkchem 02 Jun 2021 38 3 dk okuma

TURKCHEM

As more time has been spent at home due to the pandemic and consumer priorities have shifted, food products continue to rank first in shopping. Demand for snack products and items such as ice cream is also increasing. PLAT Association of Private Label Product Manufacturers and Suppliers announced sector developments for the first quarter of 2021. According to Nielsen data, the turnover of Private Label products in this period increased by 21 percent compared to the same period last year.

According to data compiled by Nielsen for PLAT Association, looking at the 2021 first quarter performance of Private Label products in the Fast-Moving Consumer Goods (FMCG) market excluding cigarettes and alcohol; Private Label turnover increased by 21 percent compared to the first quarter of 2020. In the same period, the share of Private Label products in the FMCG market reached 22.9 percent. Private Label products continued their growth trend across main categories, particularly in food. In the first quarter of 2021 compared to the first quarter of 2020, PL turnover in the Food and Non-Alcoholic Beverages category increased by 24 percent, in the Home Cleaning and Other category by 20 percent, and in the Personal Care category by 7 percent. While food led the increase in turnover due to the effect of staying at home during the pandemic, growth in personal care products remained more limited.

Private Label oils turnover increased by 51 percent in the first quarter

While PL food turnover increased by 24 percent in the first three months of 2021, PL oils turnover increased by 51 percent. This increase stemmed from rising vegetable oil prices worldwide, particularly sunflower oil. It is noteworthy that Private Label oils' share in this category of the FMCG market rose to 29.7 percent when compared to the first quarter of last year. A surprising turnover increase in food came from ice cream at 63 percent.

Private Label share in the cleaning category reached 19.6 percent of the FMCG market

In the first quarter of the year, Private Label product turnover in the Cleaning and Other category increased by 20 percent compared to the same period last year, raising its share in the FMCG market to 19.6 percent. When examined by sub-products; the highest turnover change occurred in Non-Chemical Home Cleaners at 42 percent, followed by Bags at 39 percent. Both product groups also increased their market shares. The 20 percent increase in PL cleaning products was driven by these product groups. In the Non-Chemical Home Cleaners category, products such as cleaning buckets, brushes, dish sponges, and cleaning cloths, as well as in the Bags category; refrigerator bags, garbage bags, sealed bags, oven bags and all such products have plastic, or polymer, as their raw material. The high increase in turnover of these products was influenced by the reflection of rising plastic raw material prices worldwide in product prices.

Private Label product turnover in personal care increased by 7 percent

In the Personal Care category, Private Label products captured a 19.6 percent share of the FMCG market in the first quarter of 2021. When compared to the three-month period of last year, turnover of these products increased by 7 percent. Body Care product turnover increased by 41 percent, Hair Care product turnover increased by 26 percent, and Shaving product turnover increased by 11 percent. The increase in turnover of Paper Products, where PL is very strong and holds significant share in the 19.6 percent market share of the Personal Care category, remained at 2 percent. Private Label Paper Products such as paper towels, toilet paper, napkins, and wet wipes hold a 36.7 percent market share in the FMCG market in this category. The 2 percent turnover increase in the first quarter indicated that Private Label Paper Product prices barely increased compared to last year in this period. M. İmer Özer, Chairman of the Board of PLAT Association of Private Label Product Manufacturers and Suppliers, made the following comments in his assessment of the sector's 2021 first quarter data: "Nielsen data showed that Private Label products continued their turnover increase and growth in the first quarter compared to last year. While total PL turnover increased by 21 percent in the first quarter, the increase in food was 24 percent. Certainly, increased time spent at home due to the pandemic and changing consumer priorities are important factors. Private Label products, which supply consumers with quality and reliable products across many categories at affordable prices, continue to act as a brake on inflation. In the first quarter of 2021, considering the increase in commodity prices worldwide (metals, paper, plastic raw materials, etc.), as well as the Producer Price Index increase in Turkey and the 21.56 percent minimum wage increase, the 21 percent turnover change in Private Label products shows us that PL manufacturers could not even increase product prices by the amount of cost increases or that sales volume in units or tonnage remained at the same level as the first quarter of 2020. In either scenario, we can say that the first quarter developments for our sector fell below expectations."