Own-label sales in the UK are forecast to exceed 40 per cent of total consumer packaged goods spending by 2011.
UK consumers spent£42 billion on own-label food, drinks and personal care last year and the report indicated that this will increase to£52 billion by 2011.
Own label covers all products that are produced by, or on behalf of, a retailer to be sold in stores.
The rest of Europe lags behind the UK in own label for several reasons, many of which reflect the unique structure of UK retailing, according to Datamonitor.
The report said: 'Retailer concentration in the UK grocery market is particularly high, with the top five supermarkets dominating to an extent generally not seen in the rest of Europe.'
UK retailers have been quicker their European counterparts to respond to consumer demand and plug gaps in the market. Grocery retailers have expanded beyond food into many other categories. The personal care market is dominated by chains such as Boots and Superdrug, which also have successful own-label brands.
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