NEWS ROUNDUP
Supermarkets Harness the Power of TikTok for Growth
Tiktok

The rapid rise of TikTok as a marketing tool has transformed how retailers, particularly supermarkets, engage with customers. The platform provides an avenue to highlight unique products, showcase innovative recipes in an engaging format, and even attract tourists to stores abroad that have gained popularity through viral trends.

One prime example is a simple cucumber salad recipe that amassed over 15 million views, leading to a surge in demand and cucumber shortages in supermarkets. Marks & Spencer (M&S) has also seen significant traction on TikTok, notably with its Big Daddy chocolate bar. Individual M&S stores across the UK have delighted audiences by participating in popular TikTok challenges, including lip-syncing and dancing during working hours, offering a glimpse into store culture and boosting brand visibility.

Rossmann has created a special channel for its popular own brand Isana: @isana_rossmann. The new face of the TikTok presence, which will significantly shape the channel as a content creator, is now being sought. The search for the new Isana Face is closely accompanied via the social media platform. This form of recruiting as well as the created vacancy are unique in the industry to date.

Tesco has taken a strategic approach, incorporating TikTok trends into its in-store features, such as salad creation stations and “High in Protein” displays, mirroring the platform's healthy eating fads. “This trend is driven by younger consumers, particularly on social platforms like TikTok and Instagram, where influencers share protein-rich recipes and highlight their nutritional benefits,” a Tesco spokesperson noted.

TikTok has revolutionised product discovery for Gen Z shoppers, reinforcing its role as a powerful driver of marketing success. Retailers have an opportunity to engage this audience not just with food but with experiences, novelties, and recognising that young consumers want to feel seen. In addition, many have let their store staff to post authentic relatable content.

Packaging 2025: Navigating the Future of Innovating Solutions
Reduce Reuse

The use of plastic has faced increasing scrutiny across industries as consumer awareness of environmental impacts grows. Nowhere is this more evident than in food and drink packaging, a sector under immense pressure to align with evolving consumer expectations and comply with new governmental standards. To stay competitive, innovation will be crucial in finding practical, sustainable alternatives to traditional plastic.

Eco-Conscious Consumers Shift Buying Behaviours
A report by Mintel highlights that 30% of consumers would be influenced by a rating scale indicating a product's environmental impact. This shift towards sustainability has tangible effects on purchasing habits; in Germany, 36% of shoppers prioritised minimally packaged products in 2024.

Key Packaging Trends Leading Up to 2025:

1. Reducing Plastic Usage
The most straightforward trend centres on cutting down plastic usage in packaging. While a complete ban on plastic is not feasible due to its essential protective and preservative properties, companies are actively redesigning packaging to minimise material use. This approach helps balance sustainability with practical needs, tapping into a growing consumer demand for eco-friendly solutions.

2. Challenges with Circularity and Refill Systems
Circular packaging and refill schemes are gaining traction, yet they come with their own set of challenges. These initiatives demand a significant change in consumer habits, but they present a way for businesses to meet eco-conscious expectations. Recyclable packaging can address plastic waste concerns and bolster brand image. Supermarkets are experimenting with such measures; for instance, Asda’s introduction of refill stations has proven popular, reinforced by a "refill price promise" that makes these products more economical than their pre-packaged counterparts.

3. Tackling Food Waste with Smarter Packaging
While plastic pollution garners significant attention, food waste is another environmental issue that cannot be ignored. Packaging must strike a balance between sustainability and functionality by ensuring products stay fresh for as long as possible. This aspect presents an opportunity for companies to highlight how their packaging contributes to reducing food waste and extending product shelf life. Brands with shelf-stable goods can benefit by better communicating these advantages to consumers.

Looking ahead, industry experts, including Benjamin Punchard, Global Packaging Insights Director at Mintel, will explore these developments in detail at PLMA’s upcoming Packaging Conference on 30 January 2025 in The Hague, offering valuable insights for retailers and manufacturers aiming to stay ahead in the evolving packaging landscape. For more information about the conference click here.

Retail Buying Alliances on the Rise: Eurocash and EMD Expand
Puzzle

Wholesaler Eurocash Group in Poland has set up a purchasing alliance among its local retail chains associates. The alliance is called Równi w Biznesie (Equal in Business) and includes 15,5000 franchise and partner stores.

This move comes in response to the intensifying price competition within the country and the growing dominance of discount chains. By analysing disparities in product offerings between supermarkets, discounters, and local stores, Eurocash aims to empower its partners with stronger negotiating leverage for better trading terms.

On the international front, the European Marketing Distribution (EMD) group has expanded its reach by welcoming South Korean Lotte group as a new associate member. Lotte is one of the largest retailers in South Korea, with branches in China, Indonesia, Japan and Vietnam. It has a turnover of around €50 billion. The retailer is also involved in convenience chain 7-Eleven.

Lotte wants to further develop its own brand with the help of EMD. For European members of the association, the collaboration offers potential opportunities for the introduction of Asian concepts.

The EMD alliance consists of 14 members and partners, covering 250 grocery retail chains in 18 countries, representing 56,000 points of sales, cumulating a potential consumer turnover of €175 billion in Europe.

Upcoming New EU Novel Food Rules
EU Flag

Starting in February 2025, updates will apply to all novel food applications submitted to the European Commission. The European Commission tasked the European Food Safety Authority (EFSA) with updating the guidance on how to prepare and submit applications to market novel foods in the EU. This update consists of two key documents:  

The first is scientific guidance, detailing the necessary scientific data that applicants must submit. The second, administrative guidance, outlines the step-by-step process for submitting applications, managed by EFSA’s front-desk support team.

These changes are crucial for businesses, including those in the emerging sector of cell culture-derived foods. Since the initial rollout of novel food regulations in 2018, substantial data has been gathered, enabling EFSA to refine its approach and specify clearer definitions and data requirements. This evolution aims to enhance the quality of applications and improve efficiency in the review process.

EFSA maintains a nine-month timeframe for completing risk assessments. By providing more comprehensive guidance at the outset, the hope is to reduce the need for further back-and-forth between applicants and EFSA, thereby expediting approvals.

Once EFSA grants approval, companies will need to consult with the European Commission and relevant national or local authorities to ensure compliance with marketing and labelling requirements.

PLMA Live!
Positive Growth Outlook for Private Label
rectangle

A new PLMA study reveals that European retailers and manufacturers are optimistic about private label growth over the next five years, though challenges remain. The survey included over 1,000 executives from 865 companies across 37 countries, highlighting increased collaboration to boost profitability. Judith Kolenburg reports.

Meanwhile, protein products have shifted from niche items for athletes to everyday staples in supermarkets. Hans Kraak explains how the trends reflects evolving consumer attitudes towards health and nutrition, leading to more protein innovations and a broader range of private label offerings.

European e-Grocer Rohlik Ramps up Expansion Plans
Rholik

The rapidly growing Rohlik Group relies on a simple strategic combination of wide assortment, freshness, great service, sustainability, and value for money.

Petr Chvojka, Group Head of Private Label at Rohlik Group, shares the company's ambitious growth and expansion plans for the next few years. He encourages manufacturers to get ready for the e-food revolution, saying the automation of fulfilment centres and AI optimization will be key factors to success.

In the stores

Penny Italia has launched Foreveryou, a new private label line designed for the target consumers, men and women, who range from 50 to 70 years old. Products include food and cosmetics and will be expanded over time.

Asda is the eighth supermarket in the UK to include a “Buy British’ section on its website to encourage buyers to purchase more locally grown or sourced produce. It joins 7 other large UK grocers which have all launched dedicated ‘British’ sections online over the past year.

Lidl offers users of the Lidl Plus app access to the Disney+ streaming service in Germany. Anyone who purchases for at least 20 euros will receive access to the "Standard with advertising" subscription option. This normally costs 5.99 euros per month. Depending on sales, app users will receive Disney+ at a gradually reduced price or for free if they purchase over 400 euros per month.

Alcampo has committed €19.4 million to the development of an advanced automated warehouse, utilising robotics and AI to bolster its online shopping operations. The warehouse is managed by Ocado and designed to process up to 280,000 online orders each month.

Spar has recently started using an AI-based solution to support employees and retailers with technical questions. The tool, which uses GPT models, was developed by the in-house IT unit. The main focus is on improving everyday working life for staff.

Drugstore chain Rossmann wants to turn its own brand Isana into a love brand with its own TikTok channel and is looking for the right face for it. Rossmann's main channel on TikTok currently has 1.1 million followers.

Danish retailer føtex, part of Salling Group, has opened a first autonomous store powered by AiFi technology. The checkout-free shopping location is open 24/7 and works with the “just walk out” technology. There are 1,500 items to choose from on just 120 sqm.

Carrefour has a new banner in Spain: Carrefour City. With this, Carrefour's brand portfolio in Spain will increase to half a dozen banners: Carrefour, Carrefour Express, Carrefour Market, Carrefour City, Carrefour Bio and Supeco.

Albert Heijn brings a new private label to market: Blue Home. Products comprise kitchen appliances such as toasters, blenders, kettles and Airfryers. The new products should help customers to quickly and easily prepare a healthy meal.

Rewe is relying on ‘assisted baking’ empowered by AI, with intelligent ovens whose baking programs are digitally adapted. This means that even inexperienced employees can operate the store oven - with consistently good baking results every time.

Colruyt will be testing its smart shopping cart with the general public next year. The carts, which have been successfully tested by staff, have a touch screen which shows the shopping list once the loyalty card is scanned. The list is automatically updated during shopping and the carts allow for checkout without queueing.

Sainsbury’s is piloting a series of innovative technologies in its stores as part of its "mission-based" strategy for future store development. The trials feature a new generation of hybrid self-checkouts that include touchscreens that enable customers to locate specific products within the store without the need to consult a store colleague.

Aldi has removed plastic windows and trays from several savoury food lines, in a move it says will eliminate 127 tonnes of the material annually. The discounter’s products will now come in cardboard packaging, with no plastic windows.

Market research
The Growth of Private Labels in Europe Will Continue
Survey

A new PLMA study entitled "European Retailers & Manufacturers Talk About the Future: What will the private label landscape look like in the next five years?", reveals that nine in 10 private label manufacturers and retailers say that the success of private label will continue going forward. 

"Given that the share of private labels in Europe is already the highest at 39 percent of the entire food market, the reaction of experts in the industry is generating great optimism among all private label players," said PLMA President Peggy Davis.

With the optimism, there are also challenges, and day-to-day operational issues, not competitive ones, appear to be the biggest issue for both players, manufacturers and retailers. Geopolitical unrest and climate change are putting pressure on the supply chain and on the consistent quality and availability of raw materials and ingredients. Also, finding skilled personnel is a concern and could get in the way of the companies’ expected growth forecast.

The study was built on a survey, conducted between June and August, among 1,017 executives from 865 private label manufacturers and retailers in 37 European countries. For more information contact Judith Kolenburg at kolenburg@plma.nl.

Challenges to Change Avoidable Plastic in Food Packaging
Plastic waste

According to a recent study by DS Smith and consumer research institute Retail Economics, almost half of the food packaging in German supermarkets consists of avoidable plastic. But changing the packaging is proving difficult: despite growing awareness, industry efforts to shift towards sustainable solutions are hindered by competitive concerns and consumer behaviour.

Key barriers include the cost of raw materials, which 40% of respondents cited as the primary hurdle. Consumer acceptance poses another challenge: 39% of industry experts are concerned that customers may resist changes to packaging.

The study reviewed 1,500 food and beverage packaging samples across major supermarkets in Germany, France, Italy, Poland, and Spain, finding that a substantial portion of packaging could be replaced or eliminated to significantly reduce plastic waste.

European plastic consumption remains considerable, with the UK topping the list at 

70% of food packaging comprising plastic, followed by Spain (67%), Germany and Italy (66%), Poland (62%), and France (59%).

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