Private label at 23% in Europe

Datamonitor reports that private label sales have risen 7.4% over the past five years in Europe (5.3% in the US), and now total 23% of the European CPG market.

The article suggests that branded manufacturers should broaden their product lines to compete:

Private label variation is the key to success, with retailers creating value, mainstream and premium product lines under a single private label banner, thus managing to capture all consumer groups.

Datamonitor suggests famous brands may gain from following suit as consumers demand a greater range of choice, and expect similar product quality combined with greater value.

I think this could be one approach, but I would worry, if I had a premium brand, that I might be diluting the brand image by going downscale, if I followed this advice.