Table of Contents
Executive Summary
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- Slow growth forecast
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- Figure 1: MULO sales and forecast of private label food and beverages, at current prices, 2009-19
- Key players
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- Figure 2: Store brand food and beverage purchases in the past month, September 2014
- The consumer
- Significant likelihood to buy store brand staple food and beverage items
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- Figure 3: Types of store brand food and beverage purchases in the last month, September 2014
- Value drives sales most; 40% say store brands are as good as national brands
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- Figure 4: Reasons for buying store brand food and beverages, September 2014
- More than three quarters say value makes them more likely to buy
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- Figure 5: Factors influencing more store brand food and beverage purchases (any rank), September 2014
- More than six in 10 agree that store brands taste just as good as national brands
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- Figure 6: Attitudes toward store brand and national brand food and beverages – private label quality (any agree), September 2014
- More than half agree that buying store brands makes them feel smart
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- Figure 7: Attitudes toward store brand and national brand food and beverages – perceptions (any agree), September 2014
- What we think
Issues and Insights
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- How can private label overcome some lingering perceptions of lower quality?
- The facts
- Insight: Better differentiation between value and premium tiers
- What will make store brands resonate better with Millennials?
- The facts
- Insight: Offer unique products, employ brand stories in marketing
- Hispanics are heavy private label users; can penetration increase?
- The facts
- Insight: Targeted products that resonate with Hispanic shoppers
Trend Application
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- Trend: Prove It
- Trend: Locavore
- Trend: Survival Skills
Market Size and Forecast
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- Key points
- Sales and forecast of private label food and beverages
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- Figure 8: MULO sales and forecast of private label food and beverages, at current prices, 2009-19
- Figure 9: MULO sales and forecast of private label food and beverages, at inflation-adjusted prices, 2009-19
- Fan chart forecast
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- Figure 10: MULO sales and forecast of private label food and beverages, at current prices, 2009-19
- Fan chart methodology
Market Drivers
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- Key points
- Value remains key sales driver
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- Figure 11: Reasons for buying store brand food and beverages, September 2014
- Economic factors
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- Figure 12: University of Michigan’s Index of Consumer Sentiment (ICS), 2004-14
- Figure 13: US Unemployment rate, 2004-14
- Improved quality of store brands attracts buyers
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- Figure 14: Reasons for buying store brand food and beverages, by household income, September 2014
- Millennials represent an important demographic for store brands
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- Figure 15: Any Likelihood of purchasing store brand food and beverages, by generations, September 2014
- Hispanics report highest likelihood to buy a range of store brands
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- Figure 16: Store brand food and beverage purchases in the past month, by race/Hispanic origin, September 2014
- Hispanic population set to increase 11.9% between 2014 and 2019
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- Figure 17: Population, by race and Hispanic origin, 2009-19
- Presence of children means higher likelihood to buy store brands
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- Figure 18: Store brand food and beverage purchases in the past month, by presence of children in household, September 2014
- Percentage of households with children declines
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- Figure 19: Households, by presence of own children, 2003-13
Competitive Context
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- National brands maintain a majority of MULO sales
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- Figure 20: Total and private label MULO food/beverage sales, and private label share of total, at current prices, 2009-14
- Store brand share of MULO food sales remains at 18% between 2011 and 2014
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- Figure 21: Total and private label MULO food sales, and private label share of total, at current prices, 2009-14
- Store brand share of MULO beverage sales declines slightly between 2011 and 2014
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- Figure 22: Total and private label MULO beverage sales, and private label share of total, at current prices, 2009-14
Segment Performance
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- Key points
- Private label food sales account for 77% share
- MULO sales of private label food and beverages, by segment
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- Figure 23: MULO sales and forecast of private label food and beverages, by segment, 2012 and 2014
- MULO sales and forecast of private label food
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- Figure 24: MULO sales and forecast of private label food, at current prices, 2009-19
- MULO sales and forecast of private label beverages
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- Figure 25: MULO sales and forecast of private label beverages, at current prices, 2009-19
Retail Channels
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- Key points
- Supermarkets dominate but drug stores exhibit most growth
- MULO sales of private label food and beverages, by channel
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- Figure 26: MULO sales of private label food and beverages, by retail channel, at current prices, 2009-14
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- Figure 27: MULO supermarket sales of private label food and beverages, at current prices, 2009-14
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- Figure 28: MULO drug store sales of private label food and beverages, at current prices, 2009-14
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- Figure 29: Other MULO sales of private label food and beverages, at current prices, 2009-14
Innovations and Innovators
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- Helping consumers eat better
- New flavor ranges cater to expanding consumer palates
- Premium/gourmet quality
The Consumer – Store Brand Food and Beverage Purchases
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- Key points
- Most bought private label at Walmart
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- Figure 30: Store brand food and beverage purchases in the past month, by age, September 2014
- $25K-74.9K most apt to buy at Walmart
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- Figure 31: Store brand food and beverage purchases in the past month, by household income, September 2014
- Millennials most apt to buy at mass, budget supermarkets
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- Figure 32: Store brand food and beverage purchases in the past month, by generations, September 2014
- Least educated most apt to buy Walmart store brands
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- Figure 33: Store brand food and beverage purchases in the past month, by education level, September 2014
The Consumer – Types of Food and Beverage Store Brands Purchased
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- Key points
- Respondents most apt to buy store brand milk, cheese, bottled water
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- Figure 34: Types of store brand food and beverage purchases in the last month, by age, September 2014
- Hispanics report most likelihood to buy a range of store brand products
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- Figure 35: Types of store brand food and beverage purchases in the last month, by race/Hispanic origin, September 2014
- Households with children most likely to buy a range of store brand items
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- Figure 36: Types of store brand food and beverage purchases in the last month, by presence of children in household, September 2014
- Millennials report buying a number of store brand food/beverages
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- Figure 37: Types of store brand food and beverage purchases in the last month, by generations, September 2014
The Consumer – Likelihood of Purchasing Store Brand Food and Beverages
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- Key points
- High likelihood to buy a number of other store brand food and beverages
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- Figure 38: Likelihood of purchasing store brand food and beverages, September 2014
- Hispanics very likely to be open to buying a range of other store brands
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- Figure 39: Any Likelihood of purchasing store brand food and beverages, by race/Hispanic origin, September 2014
- Households with children represent important group for store brands
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- Figure 40: Any Likelihood of purchasing store brand food and beverages, by presence of children in household, September 2014
The Consumer – Reasons for Buying Store Brand Food and Beverages
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- Key points
- Value, quality are the leading motivators for buying store brands
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- Figure 41: Reasons for buying store brand food and beverages, by age, September 2014
- Boomers, Swing Generation cite value, quality as reasons to buy
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- Figure 42: Reasons for buying store brand food and beverages, by generations, September 2014
The Consumer – Factors Influencing More Store Brand Food and Beverage Purchases
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- Key points
- Value remains key factor in store brand purchase likelihood
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- Figure 43: Factors influencing more store brand food and beverage purchases, September 2014
The Consumer – Attitudes toward Store Brand and National Brand Food and Beverages
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- Key points
- Store brand taste perceived as equal to brand name for nearly two thirds
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- Figure 44: Attitudes toward store brand and national brand food and beverages, September 2014
- Demographics report different motivations to buy
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- Figure 45: Agreement with attitudes toward store brand and national brand food and beverages (any agree), by generations, September 2014
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- Figure 46: Agreement with attitudes toward store brand and national brand food and beverages (any agree), by race/Hispanic origin, September 2014
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- Figure 47: Agreement with attitudes toward store brand and national brand food and beverages (any agree), by presence of children in household, September 2014
Appendix – Other Useful Consumer Tables
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- Store brand food and beverage purchases
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- Figure 48: Store brand food and beverage purchases in the past month, by gender, September 2014
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- Figure 49: Store brand food and beverage purchases in the past month, by types of store brand food and beverage purchases in the last month, September 2014
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- Figure 50: Store brand food and beverage purchases in the past month, by types of store brand food and beverage purchases in the last month, September 2014
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- Figure 51: Store brand food and beverage purchases in the past month, by any likelihood of purchasing store brand food and beverages, September 2014
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- Figure 52: Store brand food and beverage purchases in the past month, by any likelihood of purchasing store brand food and beverages, September 2014
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- Figure 53: Store brand food and beverage purchases in the past month, by factors influencing more store brand food and beverage purchases – Rank 1, September 2014
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- Figure 54: Store brand food and beverage purchases in the past month, by factors influencing more store brand food and beverage purchases – Rank 1, September 2014
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- Figure 55: Store brand food and beverage purchases in the past month, by agreement with attitudes toward store brand and national brand food and beverages – private label quality, September 2014
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- Figure 56: Store brand food and beverage purchases in the past month, by agreement with attitudes toward store brand and national brand food and beverages – perceptions, September 2014
- Types of food and beverage store brands purchased
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- Figure 57: Types of store brand food and beverage purchases in the last month, by gender, September 2014
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- Figure 58: Types of store brand food and beverage purchases in the last month, by household income, September 2014
- Likelihood of purchasing store brand food and beverages
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- Figure 59: Any Likelihood of purchasing store brand food and beverages, by gender, September 2014
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- Figure 60: Any Likelihood of purchasing store brand food and beverages, by age, September 2014
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- Figure 61: Any Likelihood of purchasing store brand food and beverages, by household income, September 2014
- Reasons for buying store brand food and beverages
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- Figure 62: Reasons for buying store brand food and beverages, by gender, September 2014
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- Figure 63: Reasons for buying store brand food and beverages, by household income, September 2014
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- Figure 64: Reasons for buying store brand food and beverages, by race/Hispanic origin, September 2014
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- Figure 65: Reasons for buying store brand food and beverages, by presence of children in household, September 2014
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- Figure 66: Reasons for buying store brand food and beverages, by educational level, September 2014
- Factors influencing more store brand food and beverage purchases
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- Figure 67: Factors influencing more store brand food and beverage purchases – rank 1, by gender, September 2014
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- Figure 68: Factors influencing more store brand food and beverage purchases – rank 1, by age, September 2014
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- Figure 69: Factors influencing more store brand food and beverage purchases – rank 1, by household income, September 2014
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- Figure 70: Factors influencing more store brand food and beverage purchases – Rank 1, by race/Hispanic origin, September 2014
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- Figure 71: Factors influencing more store brand food and beverage purchases – rank 1, by presence of children in household, September 2014
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- Figure 72: Factors influencing more store brand food and beverage purchases – rank 1, by generations, September 2014
- Attitudes toward store brand and national brand food and beverages
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- Figure 73: Agreement with attitudes toward store brand and national brand food and beverages (any agree), by gender, September 2014
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- Figure 74: Agreement with attitudes toward store brand and national brand food and beverages (any agree), by age, September 2014
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- Figure 75: Agreement with attitudes toward store brand and national brand food and beverages (any agree), by household income, September 2014
Appendix – Trade Associations
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