FMI – the food industry association has released the 2021 Power of Private Brands report, which found that 91 percent of food retailers and manufacturers surveyed plan to significantly or moderately increase their investment in private brands in the next two years.
“During the pandemic, many more consumers gave private brands a try, and this has resulted in new acceptance among today’s shoppers,” said Doug Baker, VP of industry relations for FMI. “At the same time, the rise of e-commerce and home cooking offer the food industry an opportunity to further grow their private brands programs.”
The 2021 Power of Private Brands finds food retailers and suppliers have a renewed commitment to their private brands programs and are making strategic investments, including:
- 52 percent are boosting private brands e-commerce strategies;
- 77 percent are changing or rethinking private brand assortments and supplier strategies in response to the pandemic;
- 70 percent are making longer-term commitments to supplier arrangements and engaging more closely with existing suppliers; and
- 58 percent are adding innovative new private brands.
“Consumer demand for private brands in 2021 is expected to represent 95-100 percent of 2020 demand, according to IRI. The 2021 Power of Private Brands identifies key steps for the industry to turn private brands opportunities into realities,” Baker said.
As the food industry association, FMI works with and on behalf of the entire industry to advance a safer, healthier and more efficient consumer food supply chain. FMI brings together a wide range of members across the value chain — from retailers that sell to consumers, to producers that supply food and other products, as well as the wide variety of companies providing critical services — to amplify the collective work of the industry.