What you need to know

Private label food and drink products have garnered more attention in the media, as well as the business community, in recent years in part because of the impressive growth across multiple categories. Consumers are buying private label food and drink products in greater numbers, typically because these products represent better value irrespective of the price point at which the consumer is buying. While price is an important driver of private label performance, it is also evident that the quality of the products has improved in recent years, and consumers increasingly recognize that “store brands” are often of equal, or even superior quality, to comparable nationally branded products. Moreover, many retailers of private label products have developed elegant and intriguing packaging that has helped to position their products as premium, and perhaps alleviate—or even eliminate— the stigma associated with “generic” products.

This report provides a comprehensive analysis of private label food and drinks in the U.S. More specifically, the report addresses the following questions:

  • How are macro-level economic trends impacting private label sales in the U.S.?

  • How have sales of private label food and drinks fluctuated in recent years?

  • How are retailers promoting their private label lines inside and outside the store?

  • What types of products are some of the leading companies developing?

  • How do consumers view private label products, and how have those views changed in recent years?

  • To what degree do consumers view the quality of private label products compared to national brands?

Definition

For the purposes of this report, a “private label” product is one that has been manufactured or provided by one company for offer under another company’s brand. Private labels are often referred to as “store brands” by consumers. In this report the terms private label and store brand are used synonymously.

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

Data sources

Sales data

  • Market Size and Trends section: FDMx data from on SymphonyIRI Group InfoScan® Reviews (excludes Walmart).

  • Segment and brand performance sections: FDMx data from on SymphonyIRI Group InfoScan® Reviews (excludes Walmart).

Consumer survey data

For the purposes of this report, Mintel commissioned exclusive consumer research through Toluna USA to explore consumer purchase of and attitudes towards private label consumer foods and beverages. Mintel was responsible for the survey design, data analysis and reporting. Fieldwork was conducted September and October 2010 among a sample of 2,000 adults aged 18+ with access to the internet.

Mintel selects survey respondents so that they are proportionally balanced to the entire U.S. adult population based on the key demographics of gender, age, household income, and region. Mintel also slightly oversamples, relative to the population, respondents that are Hispanic or black to ensure an adequate representation of these groups in our survey results. Please note that Mintel’s exclusive surveys are conducted online and in English only. Hispanics who are not online and/or do not speak English are not included in our survey results.

Mintel has also analyzed data from Experian Consumer Research, using the Simmons National Consumer Survey (NCS), and the Simmons National Hispanic Consumer Survey (NHCS). The Experian Simmons NCS/NHCS: Spring 2010 Adult Full Year—POP survey was conducted April 2009-June 2010, and results are based on the sample of 23,572 adults aged 18+, with results weighted to represent the U.S. adult population.

The report also draws on earlier Experian Simmons surveys, notably:

  • Experian Simmons NCS/NHCS: Spring 2004 Adult Full Year unified (May 03-April 04)

  • Experian Simmons NCS/NHCS: Spring 2006 Adult Full Year—POP (May 2005-June 2006)

  • Experian Simmons NCS/NHCS: Spring 2008 Adult Full Year—POP (April 07-June 08)

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.

Advertising creative

All advertising creative provided by VMS, 1500 Broadway, New York, NY 10036. For more information or to order more ads, please contact the Accounts Services Manager, Ad Services, at 1-800-VMS-2002 or sales@vmsinfo.com.

VMS tracks competitive advertising content and activity in key industries across a broad spectrum of local and national media. VMS also captures and measures local and national editorial activity related to industries and brands to provide marketers with a unique view of the total media environment in which they compete.

Abbreviations and terms

Abbreviations

BFY Better-for-you
CEO Chief Executive Officer
CPG Consumer Packaged Goods
FDMx Food, Drug and Mass Merchandisers excluding Walmart (per SymphonyIRI Group)
GNPD Global New Products Database
MSG Monosodium glutamate, a common food additive
NCS National Consumer Survey (Experian Simmons)
NHCS National Hispanic Consumer Survey (Experian Simmons)
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Terms

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

World War II The generation born in 1932 or before. In 2010, members of this generation are aged 78 or older.
Swing Generation The generation born between 1933 and 1945. In 2010, members of the Swing generation are between the ages of 65 and 77.
Baby Boomers The generation born between 1946 and 1964. In 2010, Baby Boomers are between the ages of 46 and 64.
Generation X The generation born between 1965 and 1976. In 2010, Generation Xers are between the ages of 34 and 45.
Millennials* The generation born between 1977 and 1994. In 2010, Millennials are between the ages of 16 and 33.
Matrix Generation** The generation born from 1995 to present. In 2010, Matrices are aged 15 or younger.

* also known as Generation Y or Echo Boomers

** previously known as Post-Millennials

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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