The importance of private brands in helping consumers determine where to shop has grown significantly, influencing more than half of shoppers’ store choices in 2023 and 2024, compared to about a third in 2016, according to a recent report by The Food Industry Association (FMI).
The 2024 Power of Private Brands: What’s Ahead for Shoppers and Private Brands report found a growing preference for private label products in food retail, noting how consumers view these offerings positively, both in their value and by offering added health benefits and meeting meal solutions needs.
“Our research suggests that private brands are no longer just about offering a cost-effective alternative; they are about delivering quality, creating new experiences, and highlighting unique values that resonate deeply with today’s consumers,” said Steve Markenson, VP of research & insights for FMI, in a statement. “In turn, retailers have recognized their portfolio serves as a strategic differentiator and an extension of their brand narrative to shoppers.”
Key insights of the report include:
• Consumers say they are also open to trying more private brand items with 55 percent of shoppers reporting they increased their purchase of these products over the past year, compared to only 28 percent who have bought more manufacturer brands.
• Shoppers are increasingly driven to buy private brands primarily due to value and price, with quality and taste also rising to the top as significant factors for selection; specific drivers such as meeting meal solution needs, appealing packaging, and aligning with health needs are also cited.
FMI emphasized how private brands can take advantage of the current environment to drive value. “Private brand owners have the opportunity to further elevate their perception by increasing investments in marketing and treating the portfolio as an asset to support print and digital strategies,” said Doug Baker, VP of industry relations at FMI, in a statement. (SFA)
