Private Label Versus Specialist Brands in the Keto Yogurt Retail Space
Introduction
The market for keto-friendly products has been growing rapidly in recent years as more consumers adopt low-carb, high-fat diets. One popular product in this space is keto yogurt, which offers a low-carb alternative to traditional yogurt. In this report, we will compare private label brands with specialist brands in the keto yogurt retail space.
Private Label Brands
Private label brands, also known as store brands, are products manufactured by a third-party company but sold under a retailer’s brand name. These brands are typically cheaper than national or specialist brands, making them an attractive option for budget-conscious consumers. In the keto yogurt market, private label brands offer a range of flavors and varieties to cater to different consumer preferences.
One of the advantages of private label brands is that retailers have more control over product pricing and marketing. This allows them to offer competitive prices and promotions to attract customers. Private label brands also offer retailers higher profit margins compared to national brands, as they do not have to pay licensing fees or marketing expenses.
Specialist Brands
Specialist brands, on the other hand, are companies that specialize in producing keto-friendly products, including yogurt. These brands often have a strong following among health-conscious consumers who are willing to pay a premium for high-quality products. Specialist brands focus on using premium ingredients and innovative flavors to differentiate themselves from competitors.
One of the key advantages of specialist brands is their focus on product innovation and quality. These brands often invest heavily in research and development to create unique flavors and formulations that appeal to their target market. Specialist brands also have strong brand recognition and loyalty, which can help them command higher prices and maintain customer loyalty.
Financial Data
According to market research firm IRI, private label brands have been gaining market share in the yogurt category in recent years. In 2020, private label brands accounted for 16% of yogurt sales in the United States, up from 14% in 2019. Specialist brands, on the other hand, saw a slight decline in market share during the same period.
In terms of revenue, private label brands in the yogurt category generated $1.2 billion in sales in 2020, representing a 10% increase from the previous year. Specialist brands, meanwhile, saw a 5% decrease in revenue during the same period, with sales totaling $800 million in 2020.
Industry Insights
The keto yogurt market is expected to continue growing in the coming years as more consumers adopt low-carb diets. Retailers are likely to expand their private label offerings in response to increasing demand for keto-friendly products. Specialist brands, meanwhile, will need to focus on product differentiation and innovation to maintain their market share and appeal to health-conscious consumers.
Overall, the keto yogurt retail space offers opportunities for both private label and specialist brands to thrive. Private label brands can capitalize on their lower prices and wider distribution channels, while specialist brands can leverage their brand equity and product quality to attract loyal customers. As the market continues to evolve, it will be interesting to see how these two types of brands compete and collaborate to meet the needs of keto consumers.
