Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- The bottom line
- Making gains in some segments, losing in others
- Supermarkets find competition from other channels is increasing
- Demographic factors that impact private label sales
- More than half of respondents to Mintel’s research are their household’s primary shoppers
- Buying store brands
- Attitudes and opinions about store brands and national brands
Insights and Opportunities
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- Retailers must find ways to develop other segments
- Can American private label model itself on the British?
- Can private label brands compete against each other?
Fast Forward Trends
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- Brand experience…
- …and store brand experience
- No middleman…store brands direct to consumers
Market Size and Forecast
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- Key points
- Market size remains steady
- Commodity-type products command greatest share of store-brand sales
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- Figure 1: Total U.S. sales and forecast of private label food (nine segments), at current prices, 2002-11
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- Figure 2: Total U.S. sales and forecast of private label food (nine segments), at inflation-adjusted prices, 2002-11
- Figure 3: Total U.S. sales of total food in nine selected categories, in current and constant prices, 2002-07
Competitive Context
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- Key findings
- Private label accounts for about a quarter of total sales
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- Figure 4: Total sales and total private label sales, 2002-07
- Competition with national brands
- More convincing showing in “commodity” segments
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- Figure 5: “Commodity” segment sales of private label foods, FDMx, 2006 and 2007
- Competing in more challenging segments
- Private label product launches increase significantly in 2007
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- Figure 6: New product launches, private label food and beverages, 2002-07
Segment Performance
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- Key points
- Overall growth up 7% over two years
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- Figure 7: U.S. sales of private label food, by segment, 2005 and 2007
Segment Performance—Milk
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- Key points
- Milk is top private label category
- To remain competitive, private label expands to organic and specialty products
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- Figure 8: U.S. sales and forecast of private label milk, 2002-12
- Figure 9: Total sales and total private label sales, milk, 2002-07
Segment Performance—Dairy (Excluding Milk)
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- Key points
- Eggs are biggest private label product
- Private label natural cheese sells better than processed products
- Price increases in dairy help store brands grow
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- Figure 10: U.S. sales and forecast of private label dairy (excluding milk), 2002-12
- Figure 11: Total sales and total private label sales, dairy (excluding milk), 2002-07
Segment Performance—Bread and Cereal
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- Key points
- Private label bread is big seller
- Cereal lags behind as branded products remain strong
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- Figure 12: U.S. sales and forecast of private label bread and cereal, 2002-12
- Figure 13: Total sales and total private label sales, bread and cereal, 2002-07
Segment Performance—Sweet Goods
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- Key points
- Like other bakery products, sweet goods have strong private label identity…
- …but in ice cream, branded products still carry weight
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- Figure 14: U.S. sales and forecast of private label sweet goods, 2002-12
- Figure 15: Total sales and total private label sales, sweet goods, 2002-07
Segment Performance—Vegetables
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- Key points
- Plain vegetables have strong private label showing
- Store-brand innovation weak in the segment
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- Figure 16: U.S. sales and forecast of private label vegetables, 2002-12
- Figure 17: Total sales and total private label sales, vegetables, 2002-07
Segment Performance—Refrigerated Entrées and Frozen Seafood
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- Key points
- Private label sales of refrigerated entrées growing
- Frozen seafood is also growing area for store brands
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- Figure 18: U.S. sales and forecast of private label refrigerated entrées and frozen seafood, 2002-12
- Figure 19: Total sales and total private label sales, refrigerated entrées and frozen seafood, 2002-07
Segment Performance—Carbonated Beverages
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- Key points
- Branded products rule
- Store brands can compete in flavored carbonated water sub-segment
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- Figure 20: U.S. sales and forecast of private label carbonated beverages, 2002-12
- Figure 21: Total sales and total private label sales, carbonated beverages, 2002-07
Segment Performance—Salty Snacks
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- Key points
- As with carbonated beverages, private label makes few inroads in salty snacks
- Pork rinds and pretzels show stronger private label sales
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- Figure 22: U.S. sales and forecast of private label salty snacks, 2002-12
- Figure 23: Total sales and total private label sales, salty sancks, 2002-07
Segment Performance—Pizza
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- Key points
- Private label losing ground in refrigerated sub-segment
- Store brands comprise less than 10% of frozen sub-segment
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- Figure 24: U.S. sales and forecast of private label pizza, 2002-12
- Figure 25: Total sales and total private label sales, pizza, 2002-07
Retail Channels
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- Key points
- Supermarket private label dominates
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- Figure 26: U.S. sales of private label food, by retail channel, 2005 and 2007
Retail Channels—Supermarkets
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- Key points
- Private label sales grow as food prices rise
- A wide range of strategies
- As consumers shop a more diverse array of channels, they are offered a wider array of private label products
- Tesco enters the American market; will consumers’ attitudes towards private label change?
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- Figure 27: Supermarket sales of private label food, at current prices, 2002-07
Market Drivers
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- Household income affects spending on food
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- Figure 28: Share of expenditures for food at home, by income, 2006
- Age also influences purchase patterns
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- Figure 29: Population aged 18+, 2002-12
- Hispanics are more likely than average to purchase store brands
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- Figure 30: Population, by race and Hispanic origin, 2002-12
Who Shops for Food?
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- Key points
- More than half of food shoppers shop alone
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- Figure 31: Participation in household food shopping, by gender, age, household income, race/Hispanic origin and marital status, January 2008
Where Grocery Shoppers Buy Their Food
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- Key points
- Income determines food shopping venues
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- Figure 32: Grocery shopping venues, by income, January 2008
How Much They Spend
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- Key points
- Mean spending varies by demographic characteristic
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- Figure 33: Mean weekly spending on food, by gender, age, household income, race/Hispanic origin and marital status, January 2008
Buying Store Brands
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- Key points
- Age matters
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- Figure 34: Percentage of weekly store-brand food purchases, by age, January 2008
Where Shoppers Buy Store Brands
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- Key points
- Supermarkets are source of store brands for more than seven in ten respondents
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- Figure 35: Venues for the purchase of store-brand food, by age, January 2008
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- Figure 36: Venues for the purchase of store-brand food, by income, January 2008
Which Store Brands Do They Buy?
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- Key points
- More store brands than ever
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- Figure 37: Propensity to purchase specific store brands, January 2008
Frequency of Purchasing Store Brands
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- Key points
- What they buy
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- Figure 38: Frequency of purchasing specific store-branded products, by age, January 2008
- What they don’t buy
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- Figure 39: Likelihood of not purchasing specific store-branded products, by age, January 2008
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- Figure 40: Likelihood of not purchasing specific store-branded products, by income, January 2008
Opinions about Store Brands and National Brands
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- Key points
- For more than seven in ten respondents, store brands are equal in quality to name brands
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- Figure 41: Opinions about nationally branded and store-branded products, by age, January 2008
IRI/Builders Panel Data
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- Consumer insights—private label foods
- Eggs
- Milk
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- Figure 42: Household sales of Fresh eggs and milk, by household penetration, for the 52 weeks ending 06/24/07.
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- Figure 43: Household sales of fresh bread, by household penetration, for the 52 weeks ending 06/24/07
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- Figure 44: Household sales of cold cereal, by household penetration, for the 52 weeks ending 06/24/07
- Natural cheese
- Natural shredded cheese
- Natural chunk cheese
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- Figure 45: Household sales of selected natural cheese products, by household penetration, for the 52 weeks ending 06/24/07.
Cluster Analysis—Another View on Store Brand vs. Branded Products Shoppers
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- Insights
- Cluster 1: ”Other” shoppers
- Cluster 2: Store brand shopper
- Cluster 3: Branded products loyalty group
- Cluster distribution and demographics
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- Figure 46: Private label food clusters, January 2008
- Figure 47: Private label food clusters, by gender, January 2008
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- Figure 48: Private label food clusters, by age, January 2008
- Figure 49: Private label food clusters, by income, January 2008
- Methodology
- The base for the cluster analysis is 1,406 adults, age 18+, who frequently shop at grocery store/supercenters. This is a subset of the original 2,000 respondents.
- This cluster analysis used three questions from the Mintel’s Internet survey of January 2008:
Appendix: Other Useful Consumer Tables
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- Figure 50: Grocery shopping venues, by race/Hispanic origin, January 2008
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- Figure 51: Percentage of weekly store-brand food purchases, by race/Hispanic origin, January 2008
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- Figure 52: Frequency of purchasing specific store-branded products, by income, January 2008
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- Figure 53: Frequency of purchasing specific store-branded products, by race/Hispanic origin, January 2008
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- Figure 54: Likelihood of not purchasing specific store-branded products, by race/Hispanic origin, January 2008
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- Figure 55: Opinions about nationally branded and store-branded products, by race/Hispanic origin, January 2008
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- Figure 56: Opinions about nationally branded and store-branded products, by income, January 2008
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Appendix: IRI/Builders Panel Data Definitions
Appendix: Trade Associations
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