Private-label goods gaining ground in Hungary

2010-02-16

In 2009 sales of private-label products in Hungary amounted to HUF 300bn (€1.1bn), according to Nielsen. Within the food products group, the share accounted for by private-label products increased from 21% in 2008, to 23% last year, in value terms. In the household chemicals segment, private-label goods accounted for 17% in 2009, up from 15% in 2008.
The share of sales accounted for by private-label goods is particularly high in the pet food product category and amounted to 49% (up 2 p.p.) in 2009, in value terms. Private-label frozen food, baby cosmetics, and cereals are also popular, accounting for 36%, 34% and 33% (respectively) of the total sales value of each product.
The growing popularity of private-label products in Hungary is due in no small part to the expansion of discount stores in the country. In these stores, private-label goods account for 54% of food sales and 56% of household chemical sales. Sales of private-label food products accounted for 14% of the total value of food sales while sales of private-label household chemicals accounted for 9% of the total sales value of such products. In supermarkets, these shares were 24% and 17% respectively.