Hungarian Food Manufacturers’ Experiences with the Production of Private Label Products

Abstract

Summary Private label products encompass all merchandise sold under a retailer's brand, which can be the retailer's own name or a name created exclusively by that retailer. The market share of this product segment has become an essential part of the consumer market in Europe. Food manufacturers adapted to this situation and developed their market strategies in light of this new segment. A survey carried out among 157 Hungarian food manufacturers in 2018 revealed that medium and large‐sized companies are the most likely to be involved in private label food production. The advantages and disadvantages of private label food production were compared with the outcome of similar research in 2010. There was a significant change relating to advantages for manufacturers of private label production between 2010 and 2018. Maintaining or increasing market share became one of the most important advantages in 2018 compared to 2010 when it was a less important factor. This is consistent with the increasing market share of private label food products in Hungary in the last decade. According to our results, the production of private label products did not reduce the level of innovation by food manufacturers, indeed there is evidence that innovation activity increased.