In recent years, almost every retailer in Europe has launched their own private label offering vegetarian and vegan products to consumers.
In a newly released white paper, V-Label reveals its market leading position among certified private labels. Worldwide, more than 50,000 products from more than 4,300 licensees now carry the V-label.
“V-Label is proud to work with most European retailers, who make the shopping experience easier for millions of customers. This is made possible thanks to the transparent and visible labels that V-Label offers,” commented Martin Renninger, co-director of V-Label International in the white paper release.
This McKinsey 2021 report states that retailers are now positioned to ride the fourth private-brand wave based on changing consumer preferences and habits in innovative ways. In the coming years, store brands will benefit from changes in the grocery industry, such as online shopping becoming mainstream, lifestyle considerations (such as health, sustainability and convenience) driving food demand, and value as a top priority.
Lidl’s latest announcement of expanding plant-based and reducing animal products is a positive sign of the continued growth of the plant-based division. Lidl alone has more than 1,500 certified products as part of its private label, Vemondo, as well as other private label brands.
“In several countries, V-label’s market leader position is unquestionable. For example, in Germany, more than 75% of current private label veggie brands are certified by the V-label,” shares Martin Raninger. “This certainly makes us very happy and it reflects very positively on the professional work of our international partner companies. V-label is also currently expanding into new markets, for example in Brazil, Vietnam and Malaysia.”
Private label as key to driving consumer loyalty
McKinsey argues that while the main reason shoppers return to a retailer is its location – whichever is closest to them – other top motivators are value for money and their personal brand selection. More than 54% of consumers in ten EU countries say they visit a store regularly if the products under their private label line are of good quality.
Best-practice grocers now proactively identify unmet consumer needs and then employ agile product-development processes to meet those needs as quickly as possible, another McKinsey paper shows the trend as a way to profit.
“According to FMCG Guru, 34% of European consumers know the V-label, and this number is higher in certain countries such as Spain, Sweden or Austria, where 40% responded positively. Furthermore, consumers see V-Label as more than just a helper when it comes to identifying vegan or vegetarian products,” shared Alejandro Gómez Hombrados, Consumer Insights Specialist at V-Label International.
According to consumer surveys, 69% of consumers who associate with V-label are aware of V-label-marked products and 59% are more loyal. For businesses and brands, these data can also shed light on what makes 40% of European consumers willing to pay a premium price for a product bearing the V-label.