New research from The Nielsen Co., New York, reveals that, while store brands gained share points in two-thirds of 21 European and North American countries examined by the company, advances in the United States last year were even more significant.Growth in private label is approaching 20 percent of dollar value in the US, according to Nielsen, and it is being driven by the most affluent households.

There has been discussion among analysts whether sales of private label products would continue after the economy begins to recover. However, the Nielsen suggests that not only are private label goods holding their own, but there has also been a fundamental shift in the demographic most likely to purchase private label goods, with those households earning over $100,000 a year representing the fastest growing segment of private label sales.

In an interview for the Private Label Manufacturers Association, senior vice president for the Nielsen Company Todd Hale said: “More affluent households have been driving trip growth to retailers while low income consumers, middle income households have had to pull back in a much stronger way.” Hale said that this was because more affluent households tended to be better educated, had seen their financial situations worsen and were more likely to be looking for ways to save money. “I’m often quoted as saying that poor people need low prices but rich people love low prices,” he said. Although private label does well in commodity categories like milk, eggs and sugar, as well as in those with little consumer perceived differentiation like first aid or wrapping materials, Hale says "in categories with a history of strong brand marketing support like beer and candy, or those with a high demonstrated level of innovation such as deodorants and detergents, store brand share remains relatively weak and undeveloped,the low-hanging fruit for store brands involves cherry-picking sales at the expense of smaller brands with commensurately smaller marketing support budgets."

Store brands advanced to a 17.3 percent share of dollars and a 21.9 percent share of units by March 2010, Nielsen said, up 2.1 and1.9 points respectively from 2007.

Source: privatelabelbuyer.com  and foodanddrinkeurope.com