Private-label value items have performed strongly as trading down continues, according to analysis from the Agriculture and Horticulture Development Board.
Products within a specific money saving/value for money supermarket own label range are known as value tier products.
A small part of dairy volume is made up of value tier products, sitting at 2.4% (Nielsen, 52 w/e 12th August 2023). Despite this, value tier volumes have grown by a 47.9% for dairy year on year (YoY). Cheese value products performed well, with volumes up by 56.7% (Kantar, 52 w/e 6th August).
Red meat products also saw an increase in volumes, up 35.6% YoY.
Tom Price, AHDB trainee analyst said: “This YoY growth comes from consumers looking to cut back on spending due to price rises. Price has become more important to consumers, however the data indicates that consumers do not want to fully remove their favourite meat and dairy products from their diet, but instead want to save money by purchasing value tier versions.
“By expanding the number of products on offer in the value tier and making sure this offering is tailored towards staples like mince, sausages and cheese, there is an opportunity to further expand retail sales of red meat and dairy.
“It’s also important to remember that not all retailers currently offer a value tier range, so expanding tiers in all supermarkets could attract more customers. Adequately advertising these value tier ranges in supermarkets and communicating their in-store location to consumers will then ensure value tier products can be found easily.
Price continued: “Consumers care about quality and sourcing credentials even when shopping in the value tier ranges. Shopper focus has shifted away from just low prices, and instead towards value for money and product satisfaction.”
This comes as cheese was named the top UK food export by the Food and Drink Federation in September.
