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Insight of the Day: Why isn’t private label chocolate appealing to consumers?

The article linked in your query explores why private label chocolate isn't as popular as other private label products, despite the rising cost of living and consumers seeking more affordable options. The main reason cited is the perception of chocolate as a luxury item.

Key points from the article:

  • Chocolate as a luxury: Consumers tend to view chocolate, especially chocolate bars, as a treat or indulgence rather than a basic grocery item. This perception makes them less likely to choose a private label version, which is often associated with lower quality or a less luxurious experience.

  • Private label penetration: Compared to other categories, confectionery in general and chocolate bars in particular have relatively lower private label penetration. This suggests that consumers are more brand-loyal when it comes to chocolate and willing to pay a premium for established brands.

  • National brands affected: The trend isn't just affecting private label chocolate; national brands without a 'luxury' angle are also feeling the pinch. Consumers increasingly see chocolate as a luxury, making it harder for brands that don't position themselves as such to compete.

  • Supermarkets adapting: Some supermarket chains are launching new private label chocolate ranges to cater to changing consumer preferences. These ranges often focus on quality and unique flavors to appeal to a wider audience.

It's important to note that this is just one perspective on the issue. Other factors could also contribute to the lower appeal of private label chocolate, such as limited flavor options, packaging that doesn't convey quality, or lack of trust in the private label brand.

Overall, the article suggests that the private label chocolate market is evolving, and supermarkets are adapting to changing consumer preferences. However, the perception of chocolate as a luxury item remains a significant barrier for private label brands to overcome.

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