Shoppers continue to switch to private label: Survey
Private label, or store brand, growth has widely been seen as a result of recession, but although some private label foods are simply cheaper imitations of familiar brands, there is now a greater range of store brand products on offer, with many more focused on delivering quality as well as value. This has given rise to speculation that private label products could endure well beyond economic recovery.
This latest survey, conducted by GfK Custom Research North America, found that 43 percent of respondents had recently started buying a private label alternative to a familiar branded product. In addition, 49 percent said the store brand version compared ‘very favorably’, up from only 26 percent in June.
The survey is the third that GfK has conducted for the Private Label Manufacturers Association on ‘Store Brands and the Recession’, the first in February 2009, followed by one in June 2009, and then this latest, conducted in February 2010.
GfK said 57 percent of consumers reported that they bought private label products ‘frequently’, up from 55 percent a year earlier, and 62 percent of respondents said they intended to continue buying store brands as a way to save money in the months ahead.
Private label products accounted for 21.8 percent of unit volume sales in US grocery stores during 2009 but only ten percent of items in stores, according to figures from market research organization Nielsen. And according to Mintel, private label sales account for more than $81bn in the US, with health and wellness claims including no trans fats, no saturated fats, multi-grains and antioxidants among the strongest-growing categories. The market researcher claims that this is a result of store-brand food manufacturers attempting to surpass their branded rivals in terms of innovation.
Makers of brand-name foods have been increasingly using promotional campaigns, including coupons, on-shelf messaging and discounts, in an effort to woo consumers back to their old favorites.
