Consumers upped their spending on grocers’ own-brand lines last month as food price inflation reached another high.

Aldi storefront

Aldi was the fastest-growing grocer according to the latest Kantar data

Sales of own-label lines increased 10.3% over the past four weeks while those of the cheapest such products rocketed 42%, the latest Kantar grocery market data has shown. Sales of branded goods only edged up 0.4% in the period.

Over the same period, grocery price inflation reached 14.7% – equivalent to an additional £682 on annual food bills – and contributed to a 5.2% rise in sales over the 12 weeks to October 30.

Value grocers Aldi and Lidl generated the biggest sales uplifts over that time, up 22.7% and 21.5% respectively year on year. They now hold a combined 16.4% market share.

Asda was the sales growth winner among the big four with a 5.3% advance, while Morrisons’ sales fell 4.6%.

 

Kantar head of retail and consumer insight Fraser McKevitt said: “Food and drink spending is generally non-discretionary so it’s not easy for shoppers to cut back the amount they buy. Many are looking to reduce costs in other ways and the big shift to own label is still accelerating.  

“While some of the rise will be down to price inflation, we can clearly see the trend in sales of the very cheapest value own-label ranges. These items currently represent just under 3% of the market, although retailers have been adding new products in recent months, so it will be interesting to see if this continues.

“Yet again, we have a new record high figure for grocery price inflation and it’s too early right now to call the top.  

“Just over a quarter of all households now say they’re struggling financially, which is double the proportion we recorded last November. Nine in 10 of this group say higher food and drink prices are a major concern, second only to energy bills, so it’s clear just how much grocery inflation is hitting people’s wallets and adding to their domestic worries.”