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    What is private label coffee? Difference with white and own coffee

    Home / News / What is private label coffee? Difference with white and own coffee

    What is private label coffee?

    The term ‘private label’ refers to products that are manufactured by one company but sold under the brand name of another. In the context of coffee, this means that a coffee producer creates specific blends that are then marketed under the brand name of a retailer, such as supermarkets, coffee shop chains or other food distribution companies.

    Private label coffee has gained popularity due to its ability to offer consumers a quality comparable to well-known brands at a more competitive price. Retailers can customise the product according to their consumers’ preferences – from the blend and roast to the packaging and presentation. This allows for greater flexibility, as well as offering the opportunity to create a unique brand identity.

    Differences between white label and private label coffee

    Although the terms ‘white label’ and ‘private label’ are often used interchangeably, there are fundamental differences between the two concepts.

    White label coffee is a standardised product that manufacturers offer to retailers without significant modifications. In practice, a roaster creates a single blend of coffee and sells it to various retailers who can apply their own brand name on the packaging. However, the basic product remains the same regardless of the brand name under which it is sold. This model offers less customisation, but is simpler and quicker to implement, making it ideal for companies that want to enter the market quickly with minimal effort.

    Private label coffee, on the other hand, involves a much higher level of customisation. Manufacturers work closely with retailers to create unique, customised blends that meet specific brand requirements. This can include varying degrees of roasting, bean origins, processing methods and specific packaging. The process is more complex and time-consuming, but allows retailers to offer a distinctive product that can compete effectively with well-known brands.

    The private label coffee market: size, data, and trends

    The private label coffee market is growing rapidly, driven by several factors, including increased demand for premium and customised products, growing consumer awareness of coffee quality and the desire for cheaper but high-quality options.

    According to a report by Allied Market Research[1], the global private label coffee market has been valued at around USD 30 billion in 2020 and is expected to reach USD 46 billion by 2028, growing at a compound annual growth rate (CAGR) of 5.5% during the forecast period. This surge is fuelled by the growth of supermarket and café chains that are increasingly adopting private label solutions to differentiate themselves from competitors and build customer loyalty.

    Regionally, North America holds a significant share of the market, thanks to the strong presence of grocery stores and the growing popularity of independent cafeterias seeking to offer unique products. Europe follows closely, with countries such as Germany, the UK and Italy registering a growing demand for private label coffee, driven by the cultural passion for high-quality coffee.

    With over 100 testimonials and references, De Roccis is the ideal partner when it comes to private labels of coffee beans, ground coffee as well as private label coffee pods.

    In Asia Pacific, the private label coffee market is emerging rapidly, especially in countries such as China, Japan, and India, where coffee culture is gaining ground and consumers are showing an ascending interest in premium and customised options[2].

    The expansion of the private label coffee market can be attributed to several factors:

    1. Increased quality awareness: consumers are more and more informed and aware of the different qualities of coffee and are looking for products that offer good value for money.
    1. Customised preferences: the ability to customise coffee blends to suit specific consumer tastes is a significant competitive advantage for retailers.
    2. Competitive pricing: private label coffee can be sold at lower prices than premium brands, offering an affordable alternative without compromising on quality.
    1. Brand loyalty: retailers can build greater brand loyalty by offering an exclusive product that cannot be found elsewhere.

    Conclusions

    Private label coffee represents a significant opportunity for retailers to differentiate themselves in the market of this beloved beverage by offering high-quality products at competitive prices that can be tailored according to client preferences. With the continued growth in demand for premium coffee and the expansion of retail chains, the private label coffee market is set to expand further in the coming years, creating new opportunities for innovation and development in the sector.

     

    [1] Source: Global Private Label Food and Beverages Market 2024-2028, January 2024, TechNavio (Global Private Label Food and Beverages Market 2024-2028 (researchandmarkets.com)

    [2] Source: Coffee Market Report 2021 – Global $100+ Billion Market Growth, Trends, COVID-19 Impacts, and Forecasts to 2026 – ResearchAndMarkets.com

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