The Role of Private Labels in the Organic Food Market

Abstract

The organic food market has become one of the most rapidly growing sectors in developed economies around the world in the last decade, but it has not grown at the same pace in all the countries. The review of literature clearly indicates that the main motivations of the Spanish consumer to buy organic food are Health, Taste and Quality; also reveals that the main barriers are related to Price and Availability. The organic Store Brand appears as an opportunity for retailers to overcome those barriers, the price gap and the lack of availability. This study investigates the role of Store Brands in the development of the organic food product category. The authors provide a comprehensive picture of the current status in the Spanish distribution channels and review some PL strategies for the retailers to develop the category in different marketing areas such as branding, labelling, pricing, merchandising and promotion.