Trends in the private label retail market

Private label sales have been steadily moving upward since 2016. In fact, it showed its highest growth during lockdown which begs the question as to why it has been gaining such continued momentum in the retail market.

Financial challenges resulting from the pandemic have led to consumers consciously seeking the best value for their money. This is reflected in the increasing retail shelf space that is being taken up by private label offerings, often at better prices, creating strong competition amongst brands fighting to retain shelf space. Another reason would be the move away from the initial ‘cheap’ no-name brands to offerings which now range from high value for money, to solid middle-of-the-range products, to a new generation of premium products which represent both quality and value.

One of the fastest growing sectors in this field has been healthcare and wellness (fuelled by the massive shift towards health and hygiene during lockdown) which, of course, brings us to rooibos tea, gaining increasing popularity as a wellness drink.

Wellness Teas

While coffee is still considered a relatively healthy beverage, tea boasts the most benefit over any other type of beverage. Living through a pandemic has made many people realise the importance of immune-boosting food and beverages. Wellness teas were already on the rise before the pandemic, but, as more people looked for solutions to boost immunity, tea increased in popularity because health-conscious consumers are now looking for beverages that can provide them with more than just hydration.

Plant-based foods and drinks, like rooibos tea, can be considered wellness drinks in and of themselves. However, other wellness teas provide a blend of various teas and herbal additions to offer a specific benefit to the drinker. For example, a weight loss tea consists of multiple ingredients and/or teas with healthy components to promote weight loss.

Eco-Friendly Packaging

There is an increased awareness and a move toward a more sustainable future. Retailers are increasingly utilising sustainability and ethical labels on their private label offerings to signify to this consumer segment that they share these values. Tea companies are utilising more sustainable packaging solutions, such as biodegradable tea bags, paper packaging, and improved tins to remove harmful plastics from packaging. Because tea is considered a natural product, it makes sense that everything surrounding the beverage should be eco-friendly – and consumers are seeking this.