What you need to know

Private label food and beverage sales grew slowly from 2011-14, reaching $74.1 billion, and are forecast to reach $81.6 billion by 2019. Mintel’s research shows store brands have high usage and are viewed mostly positively. Over 60% agree store brands are as good as national brands, and over half agree the store brands they buy are household essentials. Thus, continued retailer investment in store brands can be a competitive advantage that provides higher-margin profit than national brands. Retailers should focus on those most likely to buy store brands: Hispanics, Millennials, and households with children. Healthy and premium lines, and unique flavors and product types, will grow sales.

Definition

This report builds on the analysis presented in Mintel’s The Private Label Food Consumer – US, November 2013, as well as the November 2011 and February 2008 reports of the same title; The Private Label Beverage Consumer – US, December 2013 and Private Label Beverages – US, September 2012; and The Private Label Food and Drink Consumer – US, December 2010.

According to the PLMA (Private Label Manufacturers Association), private label products encompass all merchandise sold under a retail store’s private label. That label can be the store’s own name or a name created exclusively by that store.

This report includes private label sales and market share data in five food departments as defined by SymphonyIRI:

  • Shelf-stable

  • Dairy/refrigerated

  • Frozen

  • Bakery

  • Deli

…as well as the following eight beverage categories:

  • Milk, non-dairy drinks, and yogurt drinks

  • Tea and coffee

  • Juice and juice drinks

  • Sports, nutritional, and performance drinks

  • Alcoholic beverages

  • Carbonated beverages (soda) and energy drinks

  • Water

  • Baby (electrolytes, baby juice)

Value figures throughout this report are at rsp (retail selling prices) excluding sales tax unless otherwise stated.

Data sources

Sales data

  • Market Size and Forecast and Segment Performance: MULO sales based on Information Resources, Inc. InfoScan Reviews; forecast developed by Mintel

  • Retail Channels: MULO sales based on Information Resources, Inc. InfoScan Reviews

Consumer survey data

For the purposes of this report, Mintel commissioned exclusive consumer research through Lightspeed GMI to explore consumer consumption of/attitudes and behaviors toward private label food and beverages. Mintel was responsible for the survey design, data analysis, and reporting. Fieldwork was conducted in September 2014 among a sample of 2,000 adults aged 18+ with access to the internet.

Mintel selects survey respondents by gender, age, household income, and region so that they are proportionally representative of the US adult population using the internet. Mintel also slightly over-samples, relative to the population, respondents that are Hispanic or Black to ensure an adequate representation of these groups in our survey results and to allow for more precise parameter estimates from our reported findings. Please note that Mintel surveys are conducted online and in English only. Hispanics who are not online and/or do not speak English are not included in the survey results.

While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to each other. Please note that the responses for race (White, Black, Asian, Native American, or other race) will overlap those that also are Hispanic, because Hispanics can be of any race.

Abbreviations and terms

Abbreviations

The following abbreviations are used in this report:

BFY Better-for-you
CEO Chief executive officer
CPI Consumer Price Index
Fl oz Fluid ounce
g Gram
GMO Genetically modified organism
GNPD Global New Products Database
MSG Monosodium glutamate
: :
: :

Generations are discussed within this report, and they are defined as:

World War II/Swing generations Members of the WWII generation were born in 1932 or before and are aged 82 or older in 2014. Members of the Swing Generation were born from 1933-45 and are aged 69-81 in 2014.
Baby Boomers The generation born between 1946 and 1964. In 2014, Baby Boomers are between the ages of 50 and 68.
Generation X The generation born between 1965 and 1976. In 2014, Gen Xers are between the ages of 38 and 49.
Millennials* Born between 1977 and 1994, Millennials are aged 20-37 in 2014.
iGeneration Born between 1995 and 2007, members of iGen are aged 7-19 in 2014.
Emerging generation The newest generation began in 2008 as the annual number of births declined sharply with the recession. In 2014, members of this as-yet-unnamed generation are younger than 7.

* also known as Generation Y or Echo Boomers

In order to provide an inflation-adjusted price value for markets, Mintel uses the CPI to deflate current prices. The CPI is defined as follows:

CPI The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.



The CPI and its components are typically used to adjust other economic series for price changes and to translate these series into inflation-free dollars. Examples of series adjusted by the CPI include retail sales, hourly and weekly earnings, and components of the national income and product accounts. In addition, and in Mintel reports, the CPI is used as a deflator of the value of the consumer’s dollar to find its purchasing power. The purchasing power of the consumer’s dollar measures the change in the value to the consumer of goods and services that a dollar will buy at different dates.



The CPI is generally the best measure for adjusting payments to consumers when the intent is to allow consumers to purchase, at today’s prices, a market basket of goods and services equivalent to one that they could purchase in an earlier period. It is also the best measure to use to translate retail sales into real or inflation-free dollars.



Based on Bureau of Labor Statistics definition.
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