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Key Attributes Beyond Price Drive Shoppers To Private Brands

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FMI – The Food Industry Association released its 2022 Power of Private Brands report, revealing that 40 percent of consumers have bought more private brands since before the pandemic, and three-quarters of these shoppers plan to continue this trend.

While 63 percent of shoppers consider these brands to be a good value and 55 percent buy private brands because they are less expensive, additional factors are driving consumer affinity for these products, including quality, taste, sustainability and contributions to health and well-being.

“While we know price and out-of-stocks have led consumers to try more private brands, we’re seeing these factors aren’t the only reasons shoppers continue to purchase private brand products,” said Doug Baker, FMI’s VP of industry relations.

“Less than two percent of shoppers say the only reason they purchase private brands is because other products were out-of-stock. When asked about 14 product attributes, shoppers identified an average of four reasons for choosing private brand products. Clearly shoppers’ interest in private brand products extends beyond just price.”

Taste and quality reign supreme

Nearly half of shoppers say they like the taste of its products, and shoppers rank the importance of taste of private brands and name brands equally, both at 78 percent. In addition, most shoppers say quality is important to them when choosing items, and more than 43 percent of shoppers are buying store brands because of their quality.

“When it comes to taste and quality, shoppers clearly see private brands as a good option, on par with national brands,” Baker said.

Additional attributes lure shoppers to private brands

Consumers reveal additional positive perceptions of product attributes that inspire their purchases:

  • When meal planning, 24 percent of shoppers say that these products “meet their meal solution needs” and 23 percent find their ingredients appealing. Additionally, 20 percent note a private brands product may fit their health needs.  
  • Shoppers report buying for sustainability factors, including convenient or resealable packaging and better for the planet.
  • Shoppers suggest that they’re more inclined to purchase these brands if they “look interesting” or if they’re perceived as “innovative or unique.”  

For more information, visit FMI.org/PrivateBrands.

To download the report, click here. To view the multimedia presentation about the report, click here.

After the past two years of uncertainty and changed plans due to the COVID-19 pandemic, we all hoped that 2022 might bring back a sense of normalcy.

However, with government and independent data confirming 40 years of inflation highs and Wall Street entering a bear market, grocers now have new challenges to face.

In this webinar, we will hear from Todd Taylor of Neighborhood Fresh and Darlene Murphy of Metcalfe’s Market about why shopper loyalty is so important in this time of inflation.

Register Now To Attend

CPG + Grocery Retailers’ Rapid Response to Shifting Consumer Behavior Is Impressive and Ongoing

At every twist and turn, brands and retailers have responded to crisis and disruption with innovation, ingenuity, and reinvention. Until the next big thing pops up, many of the changes to the way consumers now shop for groceries and purchase CPG retail items expect to remain. Despite their nimbleness over the last two-plus years, brands and retailers must continue to improve to meet evolving expectations and demands of consumers.

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