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
Executive Summary
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- Overview
- Market size and forecast for private label foods
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- Figure 1: Total US sales and fan chart forecast of private label foods, at current prices, 2009-18
- Shelf-stable dominates, but deli and bakery show potential
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- Figure 2: MULO sales of private label food, by segment, 2011 and 2013
- The private label food consumer
- Oldest consumers less likely to use store brand food
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- Figure 3: Store brands’ proportion of consumers’ weekly food purchases, by generation
- Restricted food budgets driving more than a third of consumers to use more
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- Figure 4: Consumer reasons for buying more store brands in 2013, September 2013
- Beyond price, quality, consumers want health, convenience
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- Figure 5: Consumer attitudes on store brand quality, September 2013
- What we think
Issues and Insights
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- How can retailers encourage increased store brand usage?
- Issue
- Insight: Target products to specific consumer groups
- How are retailers addressing perceptions of poor store brand quality?
- Issues
- Insight: Make a good first impression
- How can retailers differentiate between value and premium store brands?
- Issues
- Insight: Create a brand position
Trend Applications
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- Trend: The Nouveau Poor
- Trend: Moral Brands
- Mintel Futures: Human
Market Size and Forecast
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- Key points
- Recession, slow economy drive private labels sales to $55 billion
- Continued slow economic growth, product innovation will drive market
- Sales and forecast of private label foods
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- Figure 6: Total US retail sales of the private label food market, at current prices, 2009-18
- Figure 7: Total US retail sales of the private label food market, at inflation-adjusted prices, 2009-18
- Fan chart forecast
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- Figure 8: Total US sales and fan chart forecast of private label foods, at current prices, 2009-18
Market Drivers
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- Key points
- Economic indicators suggests store brand appeal will grow
- Change in SNAP benefits may influence store brand usage
- Continued quality gains will encourage consumer usage
- Innovation in products and services drives interest
Competitive Context
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- Name brands continue to dominate
Segment Performance
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- Key points
- Private label sales grow 4.6% led by shelf-stable segment
- Sales of market, by segment
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- Figure 9: MULO sales of private label food, by segment, 2011 and 2013
Segment Performance – Shelf-stable
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- Key points
- Leading segment struggles to sustain strong annual growth
- Sales and forecast of shelf-stable private label foods
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- Figure 10: Total US retail sales of shelf-stable store brand foods, at current prices, 2009-18
Segment Performance – Refrigerated and Dairy Case
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- Key points
- Sales and forecast of refrigerated and dairy case store brand food
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- Figure 11: Total US retail sales of refrigerated and dairy case store brand foods, at current prices, 2009-18
Segment Performance – Frozen
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- Key points
- Frozen segment grows despite consumers’ mixed favor for products
- Sales and forecast of frozen store brand food
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- Figure 12: Total US retail sales of frozen store brand foods, at current prices, 2009-18
Segment Performance – Bakery
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- Key points
- Bakery segment shows potential for added growth
- Sales and forecast of bakery store brand foods
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- Figure 13: Total US retail sales of bakery store brand foods, at current prices, 2009-18
Segment Performance – Deli
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- Key points
- Strong sales growth expected to slow from 2013-18
- Sales and forecast of deli store brand food
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- Figure 14: Total US retail sales of deli store brand foods, at current prices, 2009-18
Retail Channels
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- Key points
- Supermarkets
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- Figure 15: Share of MULO private label sales, 2009-13
- Figure 16: Supermarket sales of total food and private label food, at current prices, 2009-13
- Other MULO channels
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- Figure 17: Other MULO channels sales of total food and private label food, at current prices, 2009-13
Innovations and Innovative Retailers
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- Private label outpaces name brand in new product launches
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- Figure 18: New product launches, by name brand vs. store brand, 2008-13*
- Snack foods lead private label expansion
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- Figure 19: New private label food product launches, by food category, 2008-13*
- Growth in claims exemplifies potential for evolution of store brands
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- Figure 20: New private label product launches, by product claim, 2008-13*
- Safeway addresses Hispanic consumers with Mexican store brand
- 7-Eleven launches gourmet, better-for-you snacks
Marketing Strategies
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- Overview of the brand landscape
- Theme: Quality that rivals name brand standards
- Archer Farms emphasizes quality ingredients, artisanal production
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- Figure 21: Archer Farms, Archer Farms Experience–Hummus, 2013
- Walmart swaps name brand for store brand to show comparable quality
- TV presence
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- Figure 22: Walmart, Walmart Steak-over Chicago: Frank the Skeptic, 2012
- Events
- Theme: Retailers placing more importance on private label advertising
- Target boldly places store brands upfront with name brands in marketing campaigns
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- Figure 23: Market Pantry, The Everyday Collection. By Target. -"Pinata", 2013
Store Brand Food Usage
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- Key points
- Oldest consumers less likely to use store brand food
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- Figure 24: Store brands’ proportion of consumers’ weekly food purchases, by generation, September, 2013
- Store brand usage more popular with parents, not highest-income earners
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- Figure 25: Store brands’ proportion of consumers’ weekly food purchases, by presence of children in household, September, 2013
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- Figure 26: Store brands’ proportion of consumers’ weekly food purchases, by income, September, 2013
- Higher-penetration food categories have higher store brand purchase rates
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- Figure 27: Consumer store brand use, by food category, September, 2013
- Store brand users don’t discriminate against different food categories
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- Figure 28: Frequent store brand use, by food category, by gender, September, 2013
- Great Value, Kirkland most commonly used store brands
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- Figure 29: Store brand consumer usage of specific store brands, September 2013
Change in Store Brand Purchasing Behavior
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- Key points
- More than a third of store brand users buying more in 2013
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- Figure 30: Change in store brands purchasing behavior, 2013
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- Figure 31: Consumer reasons for buying more store brands in 2013, September 2013
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- Figure 32: Consumer reasons for buying less store brands in 2013, September 2013
- Lowest- and middle-income earners most likely to buy more, reasons vary
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- Figure 33: Change in store brands purchasing behavior, by income, 2013
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- Figure 34: Consumer reasons for buying more store brands in 2013, by household income, September 2013
Store Brand Food Recognition
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- Key points
- Store brand/name brand distinction often difficult for consumers
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- Figure 35: Consumer store brand and name brand recognition, 2013
- Higher-income consumers buy less but recognize brands better
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- Figure 36: Incorrect identification, by household income, September 2013
Store Brand Purchasing Behavior
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- Key points
- Low price attracts consumers but quality scares some away
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- Figure 37: Consumer attitudes on store brand quality, September 2013
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- Figure 38: Store brand purchasing behavior, September 2013
- Figure 39: Consumer attitudes toward store brand food, September 2013
- Quality breeds brand loyalty
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- Figure 40: Store brand purchasing behavior, by household income, September 2013
- Beyond price and quality, consumers want health and convenience
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- Figure 41: Consumer attitudes on store brand quality, September 2013
Consumer Attitudes toward Store Brands
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- Key points
- Store brand stigma is gone but inferiority impressions remain
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- Figure 42: Consumer attitudes toward store brand food, September 2013
- Packaging offers store brands potential to better define themselves
- Store brands compete with name brands on more than price
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- Figure 43: Consumer attitudes toward store brand food, September 2013
Race and Hispanic Origin
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- Key points
- Hispanics, other race consumers more likely to use store brand foods
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- Figure 44: Frequent usage of store brands by food category, by race/Hispanic origin, September 2013
- Hispanics buying more store brands, Blacks and Asians buying less
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- Figure 45: Change in store brand purchasing behavior, by race/Hispanic origin, September 2013
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- Figure 46: Reasons consumers are buying more store brands in 2013 than 2012, by race/ethnicity, September 2013
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- Figure 47: Reasons for buying less store brand food in 2013 than 2012, by race
- Hispanics, Asians more likely to be undercover store brand users
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- Figure 48: Any agreement with consumer attitudes toward store brand food, by race/Hispanic origin, September 2013
Appendix – Market Drivers
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- Consumer confidence
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- Figure 49: University of Michigan’s index of consumer sentiment (ICS), 2007-13
- Unemployment
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- Figure 50: US Unemployment Rate, by month, 2002-13
- Figure 51: US unemployment and underemployment rates, 2007-13
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- Figure 52: Number of employed civilians in US, in thousands, 2007-13
- Food cost pressures
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- Figure 53: Changes in USDA Food Price Indexes, 2011-14
- Obesity
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- Figure 54: American adults by weight category as determined by body mass index (BMI), 2008-June 20, 2013
- Childhood and teen obesity – highest in decades
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- Figure 55: Prevalence of obesity among children and adolescents aged 2-19, 1971-2010
- Racial, ethnic population growth
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- Figure 56: US population by race and Hispanic origin, 2008, 2013, and 2018
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- Figure 57: Households with children, by race and Hispanic origin of householder, 2012
- Shifting US demographics
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- Figure 58: US population, by age, 2008-18
- Figure 59: US households, by presence of own children, 2002-12
Appendix – Other Useful Consumer Tables
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- Figure 60: Consumption of store brand products, April 2007-June 2013
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- Figure 61: Proportion of store brands bought in a shopping trip, September 2013
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- Figure 62: Proportion of store brands bought in a shopping trip, by generations, September 2013
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- Figure 63: Consumer brand recognition, September 2013
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- Figure 64: Any confusion in recognition, September 2013
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- Figure 65: Consumer brand recognition, September 2013
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- Figure 66: Correct identification, by gender, September 2013
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- Figure 67: Consumer purchase of selected store brands, by company, by Hispanic origin, September 2013
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- Figure 68: Consumer use of store brand by food category, September 2013
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- Figure 69: Frequent usage of store brands by food category, by gender, September 2013
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- Figure 70: Frequent usage of store brands by food category, by household income, September 2013
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- Figure 71: Frequent usage of store brands by food category, by generations, September 2013
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- Figure 72: Store brand purchasing behavior, by store brand usage levels, September 2013
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- Figure 73: Store brand purchasing behavior, by change in usage, September 2013
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- Figure 74: Any agreement with consumer attitudes toward store brand food, by household income, September 2013
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- Figure 75: Any agreement with consumer attitudes toward store brand food, by race/Hispanic origin, September 2013
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- Figure 76: Any agreement with consumer attitudes toward store brand food, by presence of children in household, September 2013
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- Figure 77: Any agreement with consumer attitudes toward store brand food, by generations, September 2013
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- Figure 78: Any agreement with consumer attitudes toward store brand food, by store brand usage levels, September 2013
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- Figure 79: Any agreement with consumer attitudes toward store brand food, by change in usage, September 2013
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Appendix – Trade Associations
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