Forty-percent of consumers have bought more private brands than before the pandemic, and three-quarters of these shoppers plan to continue doing so, according to FMI–The Food Industry Association's 2022 Power of Private Brands report, which was released June 21.
The report found that a majority of consumers (63%) perceive private brands to be a good value, and 55% buy private brands because they are less expensive. Additional factors driving consumers to purchase private brands include good quality, sustainability, taste and contributions to health and well-being.
“When it comes to taste and quality, shoppers clearly see private brands as a good option, on par with national brands,” said Doug Baker, VP of industry relations for FMI, in a release. “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.”
Forty-two percent of consumers like the way private brand products taste, and 78% equally rank the taste of both private and name brands as important. More than half of shoppers (66%) feel that quality is important when selecting private brands, and more than 43% purchase store brands for their quality.
Other findings from the report revealed that 24% of shoppers that choose private brands do so because the products “meet their meal solution needs” when planning meals, while 23% say the ingredients are “appealing” and 20% note that the product fits their health needs.
Additionally, 19% of shoppers purchase private brands for their convenient and resealable packaging, and 14% feel that the products are better for the planet. Consumers are also more likely to buy private brands if they “look interesting” (20%) or if the product appears “innovative or unique” (13%).
“Less than 2% of shoppers say the only reason they purchase private brands is because other products were out-of-stock," Baker said. "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.”