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Views on impacts of private-label growth

In the Packaging World/Contract Packaging survey, the assertion by 31% of the CPG respondents (see Fig. 4) that retailers sometimes block packaging innovation may owe in part to a perception held by some package-creation teams that retailer acceptance of innovation correlates with private-label penetration in some categories. One view held in marketing circles is that some categories reward innovative packaging more than others. This usually occurs when one or two national brands dominate a high-volume product category—such as soup or soft drinks—and bring in shoppers. Prevailing thought is that retailers believe in the need to follow the leader to keep sales high.

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