Greeks turn to private-label, domestic brands in response to inflation, survey shows

Greek consumers are increasingly turning to private label products as they strive to lower their supermarket bills in the face of persistently high prices, according to an annual phone survey conducted in January 2024 by the Marketing Lab of the Athens University of Economics and Business (AUEB), using a random sample of 1880 households.

There was also a marked movement in support of products made in Greece, the survey found, with consumers adopting a more mature stance and showing solidarity with domestic industry and employees.

Asked to identify who was most to blame for excessive price hikes, the majority (68%) picked multinational companies, with big supermarket chains in second place (24.2%). A much smaller percentage blamed domestic manufacturers (6.9%) and very few blamed small shops (0.9%).

Regarding the so-called household basket for lower-price goods, consumers appeared divided over its usefulness. The survey showed that 53.5% consider the measure useful and only 52.8% actually shop goods that are in the basket. However, the acceptance of the measure by one in two consumers, according to the survey, shows that its impact is not insignificant and that its implementation interests a large portion of consumers.

Talking to the state-run news agency AMNA, Professor Giorgos Baltas reported that private label products now account for 36% of the household basket, up from 33% in 2023. “This is the highest percentage ever recorded in the 19 years we have been conducting the survey…The  private label share of the basket of goods is well above 30% of the codes that go into the consumer basket. In other words, three in 10 products bought are private label,” he said.

The survey also showed a steady rise in the share of Greek products in the basket, Baltas reported: “Consumers’ preferences for products made in Greece were not affected by the negative climate of this period. This showed that Greek production is not a more expensive purchasing choice and preferences for it are resilient over time.”

Up to 81% of those responding to the survey said they prefer Greek products over imported products when these were available. Additionally, 66% believe there is a shift by consumers toward products made in Greece, while 89% said they want packaging to indicate whether a product is made in Greece. Also, 65% believe that Greek products are safer and better quality, 93% believe that by choosing Greek products they support production in the country and 83% believe that choosing Greek products helps reduce unemployment.

Baltas said that the constantly rising pressure on household budgets since 2021 is changing purchasing habits, with the vast majority (90.3%) reporting that they are struggling financially as a result of higher supermarket prices. Consumers are turning to cheaper goods and restricting purchases, while half report that they buy only “absolutely essential” goods and one in 10 say that they cannot afford even the basics.

[AMNA]