Table of Contents
Overview
-
- What you need to know
- Definition
Executive Summary
-
- The issues
- Store brands decline, drop expected to continue
-
- Figure 1: MULO sales and forecast of private label food and beverages, at current prices, 2011-21
- Perimeter store brands grow, center of store decline
-
- Figure 2: Private label categories, any purchase, November 2016
- Private labels struggle with taste, national brands compete on price with coupons
-
- Figure 3: Reasons for decreased store brand purchase, November 2016
- The opportunities
- Consumers notice quality improvements, still room for growth
-
- Figure 4: Private label shopping attitudes, November 2016
- Simple, healthy ingredients and resealable packaging
-
- Figure 5: Private label features, ingredients and packaging, November 2016
- Core consumers are diverse
-
- Figure 6: Private label any product category, purchase all of the time, by generation, parental status, and race and Hispanic origin, November 2016
- What it means
The Market – What You Need to Know
-
- Private label category declines, driven by falling unit sales
- Food segment holds higher share, drinks to decline at greater rate
- Increased food and drink shopping options
- Growing consumer confidence, declining food prices limit private label
Market Size and Forecast
-
- Private label sales slow, further declines forecasted
-
- Figure 7: MULO sales and fan chart forecast of private label food and beverages, at current prices, 2011-21
- Figure 8: MULO sales and forecast of private label food and beverages, at current prices, 2011-21
Market Breakdown
-
- Private label food maintains lion’s share of category
-
- Figure 9: MULO sales of private label food and beverages, by segment, 2016
- Private label beverages expected to decline at a greater rate than food
-
- Figure 10: MULO sales and forecast of private label food and beverages, at current prices, 2011-21
Market Perspective
-
- Myriad of options
- Online competition
- Private label centric stores
- Amazon enters brick and mortar
- Fresh, less-processed products found at perimeter of store
Market Factors
-
- Increased confidence, falling food prices stifle private label
-
- Figure 11: Consumer Sentiment Index, January 2007-September 2016
- Households are smaller but future growth is expected
-
- Figure 12: Households, by presence of own children, 2006-16
- Core consumers experience life-changing stages
-
- Figure 13: Population by generation, 2017
- Hispanic and Asian consumers among heaviest private label users
-
- Figure 14: Population growth, by race and Hispanic origin, 2012-22
Key Players – What You Need to Know
-
- Various private label categories prosper while others struggle
- Tiered programs provide private label for everyone
- Store brands communicate health through simplicity and claims
- International inspiration
- Packaging improvements
What’s Working?
-
- Categories on the perimeter grow
- Tiered programs
- Value
- BFY
- Premium
- Ingredient claims
-
- Figure 15: Private label free-from and ingredient claims, by year, 2011-16
- Keep it simple
- Ovation for organic
- Gluten-free for all
- Around the world
- Packaging reboot
- Creative packaging that stands out from national brands
- Packaging with a sneak peak
What’s Struggling
-
- Drinks falling flat
-
- Figure 16: Total and private label MULO beverage sales, and private label share of total, at current prices, 2011-15
- Center of store categories struggle
-
- Figure 17: Total and private label MULO food sales, and private label share of total, at current prices, 2011-15
What’s Next?
-
- Upgraded packaging
- Packaging on the move
-
- Figure 18: Private label food and drink packaging claims, by year, 2011-16
- Strategic, clean packaging design
- Do it yourself
- Private label takes another play from foodservice game plan
-
- Figure 19: Private label food and drink limited-edition claims, by year, 2011-16
- GMO-free
-
- Figure 20: Private label GMO-free launches, by year, 2011-16
- Store brand promotion outside of store
-
- Figure 21: H-E-B – “Brothers” – June 2016
- New players, announcements in the private label market
- Lidl heats up the competition
- Aldi announces sweeping health initiatives
- Amazon launches private label
- Whole Foods grows 365
The Consumer – What You Need to Know
-
- Perimeter store brands purchased most frequently
- Quality improvements drive increased purchase, inferior taste drives decreased purchase
- Consumers agree store brands help save money as they compare prices
- Simple, familiar ingredients important to consumers
Food Stores Shopped Most Often
-
- Consumers shop at supermarkets and mass merchandisers most often
-
- Figure 22: Food stores shopped most often, November 2016
- Age a key indicator of channels shopped at for food and drink
-
- Figure 23: Channels shopped most often, any rank, supermarkets and mass merchandisers, by age, November 2016
-
- Figure 24: Channels shopped most often, any rank, stores other than supermarkets and mass merchandisers, by age, November 2016
- Income plays essential role where households shop
- High-income households shop at wider range of channels
-
- Figure 25: Channels shopped most often, any rank, by household income, November 2016
- Lower-income households shop convenience, value
-
- Figure 26: Food stores shopped at most often, any rank, by household income, November 2016
- Asian and Hispanic consumers frequent a wide variety of channels
-
- Figure 27: Food stores any rank, by race and Hispanic origin, November 2016
Store Brand Purchase
-
- Perimeter store brand Items most likely to be purchased all of the time
-
- Figure 28: Private label categories, any purchase, November 2016
- Millennials aged 25-34 most likely to purchase private label all the time
-
- Figure 29: Private label any product category, purchase all of the time, by age, November 2016
- Parents most likely to purchase every store brand category
-
- Figure 30: Private label categories, any purchase, by parental status, November 2016
- Hispanics most likely to buy across store brand categories
-
- Figure 31: Private label categories any purchase, by Hispanic origin, November 2016
Store Brand Purchase Drivers
-
- Close to a quarter of consumers report increased purchase of store brand
-
- Figure 32: Private label shopping behavior, purchasing more or less than year ago, November 2016
- Improved quality, budget change drive increased purchase
-
- Figure 33: Reasons for increased store brand purchase, November 2016
- Taste “inferiority” detracts from purchase
-
- Figure 34: Reasons for decreased store brand purchase, November 2016
- Parents increasing private label habits
-
- Figure 35: Reasons for increased store brand purchase, by parental status, November 2016
Store Brand Behaviors
-
- Over two fifths of shoppers compare prices between store and national brands
-
- Figure 36: Private label shopping behavior, November 2016
- Consumer identification of store brand products
- Younger parents look for new
-
- Figure 37: Private label shopping behavior, look for new store brands, by parental status and age, November 2016
- Parents more likely to buy economy store brand versions
-
- Figure 38: Private label shopping behavior, buy economy versions of store brands, by parental status and household size, November 2016
- Parents and Hispanics most likely to shop at private label-only stores
-
- Figure 39: Private label shopping behavior, frequently shop at stores that carry only their own store brands, by parental status and Hispanic origin, November 2016
Store Brand Attitudes
-
- Most consumers agree store brands are an effective way to save money
-
- Figure 40: Private label shopping attitudes, November 2016
- Multiple categories perceived to be just as good as national brands
-
- Figure 41: Private label categories purchased, store brands are just as good as national brands, any agree, November 2016
- Online retailers show potential for premium
-
- Figure 42: Food stores shopped, by private label attitudes, any agree, November 2016
- Millennials find store brand quality better
-
- Figure 43: Private label shopping attitudes, any agree, store brand quality, by generation, November 2016
- Sampling, transparency, premium interest younger consumers
-
- Figure 44: Private label shopping attitudes, any agree, by generation, November 2016
- Parents have favorable value perception of private label food and drinks
-
- Figure 45: Private label shopping behavior, any agree, by parental status, November 2016
- Hispanics give good marks, want transparency
-
- Figure 46: Private label shopping behavior, any agree, by Hispanic origin, November 2016
Store Brand Features
-
- Natural, recognizable ingredients are key
-
- Figure 47: Private label features, ingredients and health claims, November 2016
-
- Figure 48: Private label features, November 2016
- Claim importance varies by channel type
-
- Figure 49: Food stores shopped at, by interest in private label features, November 2016
- Younger consumers more interested in ingredients, packaging
- Real ingredients encourage young consumers to buy store brand
-
- Figure 50: Private label features, ingredient features, by generation, November 2016
- Younger adults seek packaging features
-
- Figure 51: Private label features, packaging features, by generation, November 2016
- Parents indicate high interest across potential store brand improvements
-
- Figure 52: Private label features, by parental status, November 2016
- Asians are core organic seekers
-
- Figure 53: Private label features, organic, by race, November 2016
-
- Figure 54: Private label features, all-natural and resealable packaging, by Hispanic origin, November 2016
Consumer Segmentation
-
-
- Figure 55: Store brand food and drink clusters
- Value Shoppers
- National Brand Leaners
- Store Brand Enthusiasts
-
Appendix – Data Sources and Abbreviations
-
- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – Market
-
-
- Figure 56: Total US sales and forecast of private label foods and beverages, at inflation-adjusted prices, 2011-21
- Figure 57: MULO sales and forecast of private label foods and beverages, by segment, at current prices, 2011-21
- Figure 58: MULO sales and forecast of private label foods and beverages, at current prices, 2014 and 2016
- Figure 59: MULO sales and forecast of private label food, at current prices, 2011-21
-
- Figure 60: MULO sales and forecast of private label food, at inflation-adjusted prices, 2011-21
- Figure 61: MULO sales and forecast of private label beverages, at current prices, 2011-21
- Figure 62: MULO sales and forecast of private label beverages, at inflation-adjusted prices, 2011-21
- Figure 63: MULO sales of private label foods and beverages, by channel, at current prices, 2011-16
-
- Figure 64: MULO sales of private label foods and beverages, by channel, at current prices, 2011-16
- Figure 65: US supermarket sales of private label foods and beverages, at current prices, 2011-16
- Figure 66: US sales of private label foods and beverages through other MULO channels, at current prices, 2011-16
-
Back to top