Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The issues
- Private label sales and share tick up in 2017 but flat in the long run
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- Figure 1: Multi-outlet sales and fan chart forecast of private label food and beverages, at current prices, 2012-22
- Private label purchase higher in more commoditized categories
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- Figure 2: Private label categories purchased, October 2017
- Generally positive views of store brands, but relatively little conviction
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- Figure 3: Attitudes toward private label, October 2017
- The opportunities
- Cost is important but so are taste and freshness
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- Figure 4: Food shopping priorities, October 2017
- Younger shoppers interested in differentiated concepts
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- Figure 5: Private label concepts, by age, October 2017
- Opportunities for growth lie beyond price comparisons
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- Figure 6: Shopping behaviors, by food shopping priority groups, October 2017
- What it means
The Market – What You Need to Know
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- Private label sales and share tick up in 2017 but flat in the long run
- Food accounts for bulk of private label food and beverage sales
Market Size and Forecast
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- Private label sales and share tick up in 2017 but flat in the long run
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- Figure 7: Private label share of multi-outlet food and beverages sales, 2012-17
- Figure 8: Multi-outlet sales and fan chart forecast of private label food and beverages, at current prices, 2012-22
- Figure 9: Multi-outlet sales and forecast of private label food and beverages, at current prices, 2012-22
Market Breakdown
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- Food accounts for bulk of private label food and beverage sales
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- Figure 10: Multi-outlet share of private label food and beverages, by segment, 2017
- Figure 11: Private label share of total multi-outlet food and beverage sales, by segment, 2012-17
- Figure 12: Total US sales of private label food and beverages, by segment, at current prices, 2012-17
- Private label in other channels outpaces supermarket store brands
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- Figure 13: Multi-outlet retail sales of private label food and beverages, by channel, at current prices, 2015 and 2017
- Figure 14: Private label share of food and beverage sales, by channel, 2012-17
Market Perspective
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- Intensified competition from new private-label-centric sellers
- Amazon/Whole Foods
- Lidl/Aldi
- Store brands face some of the same pressures as major national brands
Market Factors
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- Private label share stalls amid rising consumer confidence and stable prices
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- Figure 15: Consumer Sentiment Index, January 2007-December 2017
- Childless households continue to rise
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- Figure 16: Households, by presence of related children, 2006-16
- A diverse population creates diverse shopping needs
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- Figure 17: Population by race and Hispanic origin, 2012-22
Key Players – What You Need to Know
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- Growing categories provide platform for private label gains
- Private label share shrinks in declining categories
- Reimagining the shopping experience as simpler, more streamlined
What’s Working?
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- Single-serve coffee
- Fresh cut salad
- Bottled water
- H-E-B celebrates Texas
What’s Struggling?
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- Ready-to-eat cereal
- Private label carbonated beverages
What’s Next?
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- Reimagining the shopping experience as simpler, more streamlined
- Meal kits continue to grow at retail
The Consumer – What You Need to Know
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- Private label purchase higher in more commoditized categories
- Supermarkets, mass merchants most common channels for store brands
- Younger shoppers interested in differentiated concepts
- Generally positive views of store brands, but relatively little conviction
Private Label Purchase
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- Private label purchase higher in more commoditized categories
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- Figure 18: Private label categories purchased, October 2017
- Younger shoppers more likely to rely on store brands
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- Figure 19: Private label categories purchased – All or most of the time, by age, October 2017
- Private label purchase highest at lower income levels
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- Figure 20: Private label categories purchased – All or most of the time, by household income, October 2017
- For Hispanic shoppers, opportunity to make store brands part of the experience
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- Figure 21: Private label categories purchased – All or most of the time, by race/Hispanic origin, October 2017
Retailers for Private Label Purchases
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- Supermarkets, mass merchants most common channels for store brands
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- Figure 22: Retailers for private label purchases, October 2017
- Diversity of needs leads younger shoppers to a wider array of stores
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- Figure 23: Retailers for private label purchases, by age, October 2017
Interest in Private Label Concepts
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- National brand equivalency a starting point for store brands
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- Figure 24: Private label concepts, October 2017
- Younger shoppers interested in differentiated concepts
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- Figure 25: Private label concepts, by age, October 2017
Food Shopping Priorities
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- Cost is important but so are taste and freshness
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- Figure 26: Food shopping priorities, October 2017
- Younger shoppers more likely to prioritize price
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- Figure 27: Food shopping priorities – Top priority, by age, October 2017
Shopping Behaviors
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- Price comparisons remain a foundation, but opportunities for growth lie beyond
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- Figure 28: Shopping behaviors, by food shopping priority groups, October 2017
Attitudes toward Private Label
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- Generally positive views of store brands, but relatively little conviction
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- Figure 29: Attitudes toward private label, October 2017
- Reinforcement loop: heaviest users more likely to hold positive views
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- Figure 30: Attitudes toward private label, by repertoire of private label categories purchased, October 2017
- In their words: conditional approval
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 31: Total US sales and forecast of private label food and beverages, at inflation-adjusted prices, 2012-22
- Figure 32: Total US sales and forecast of private label food, current prices, 2012-22
- Figure 33: Total US sales and forecast of private label food, inflation-adjusted prices, 2012-22
- Figure 34: Total US sales and forecast of private label beverages, current prices, 2012-22
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- Figure 35: Total US sales and forecast of private label beverages, inflation-adjusted prices, 2012-22
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