Table of Contents
Overview
-
- What you need to know
- Definition
Executive Summary
-
- Top takeaways
- Market overview
-
- Figure 1: Total US sales and fan chart forecast of private label food and drink, at current prices, 2014-24
- Key trends
- Private label purchase trending upward
-
- Figure 2: Store brand purchase behavior, by age, November 2019
- Other retail channels upping their private label program game
-
- Figure 3: Retailers for private label purchase, November 2019
- Elevated expectations are the new normal
-
- Figure 4: Consumer opinions of store brands versus name brands, any agree, November 2019
- Issues
- Private label penetration limited in key categories
-
- Figure 5: Store brand usage, by category, by age, November 2019
- Opportunities
- Reach up-and-coming shoppers with innovation
-
- Figure 6: Store brand on consumer perception of the retailer, any agree, by age, November 2019
- Private label support to matters of corporate responsibility
-
- Figure 7: Private label food/drink purchase drivers, by age, November 2019
- Innovation that leads to exclusivity, loyalty
-
- Figure 8: Opportunities for private label, any agree, November 2019
The Market – What You Need to Know
-
- Steady growth for private label food and drinks
- Other retailers step up their game
- Private label increases share of food
- Fresh PL offerings on the store perimeter outpace brand
Market Size and Forecast
-
- Private label sales grow, principally among nontraditional grocery channels
-
- Figure 9: Total US sales and fan chart forecast of private label food and drink, at current prices, 2014-24
- Figure 10: Total US sales and forecast of private label food and drink, at current prices, 2014-24
Market Breakdown
-
- Private label showing particular strength among food
-
- Figure 11: Sales of private label food and drink, by segment, 2014-24
- Figure 12: Sales of private label food and drink, by segment, with percentage year-over-year change, 2014-24
- Supermarkets continue to lose market share to other channels
-
- Figure 13: Total US multi-outlet sales of private label food and drink, by channel, at current prices, 2014-19
- Figure 14: Total US multi-outlet sales of private label food and drink, by channel, at current prices, with percentage year-over-year change, 2014-19
Market Perspective
-
- Private label growth outperforms total food and drink
-
- Figure 15: US total multi-outlet and private label food and drink sales, and private label share, at current prices, 2014-19
Market Factors
-
- Increased DPI points to potential for premium private label
-
- Figure 16: Disposable personal income change from previous period, January 2017-October 2019
- Consumer confidence appears unsteady
-
- Figure 17: Consumer Sentiment Index, January 2007-October 2019
- Healthy aspirations drive product innovation
-
- Figure 18: Health attributes sought, May 2018
Key Players – What You Need to Know
-
- Other channels come on strong
- Innovation moves beyond value
What’s Happening?
-
- Strategy shift drives PL growth
-
- Figure 19: US sales of private label food and drink through other multi-outlet channels, at current prices, 2014-19
- Despite growth, private label drinks struggle to compete with name brands
-
- Figure 20: US multi-outlet total and private label drink sales, and private label share of total, at current prices, 2014-19
- Figure 21: Non-alcoholic beverage launches, branded versus private label, May 2014-April 2019
What’s Next?
-
- Value but with no sacrifice
- Private label is poised to tap into Elevated Convenience
- Claims/attributes may resonate more than brand (whether store or otherwise)
The Consumer – What You Need to Know
-
- Purchase of standard store brands largely on par with low-priced store brands
- Perimeter a stronghold for private label
- PL purchase moving beyond grocery retailers
- Premium PL will appeal to younger consumers
- Quality is no longer the point of difference for brands
- Product development can be a destination driver
- Premium innovation
- Healthy, natural products cast the widest net
Brand Type Purchase Habits
-
- Products positioned for value lead store brands, but only slightly
-
- Figure 22: Brand purchase habits, November 2019
- Younger adults reach for premium and natural store brand products
-
- Figure 23: Brand purchase habits, by age, November 2019
- Private label popular across income levels
-
- Figure 24: Store brand purchase habits, by household income, November 2019
Brand Preferences by Category
-
- Premium positioning can help boost non-fresh PL categories
-
- Figure 25: Brand preferences by category, November 2019
- Younger consumer interest in store brands in center-store categories
-
- Figure 26: Store brand preferences by category, by age, November 2019
Purchase Drivers
-
- Purchase factors consistent whether for store or name brands
-
- Figure 27: Food/drink purchase drivers, private label versus overall, November 2019
- Store brands could take the lead on issues
-
- Figure 28: Private label food/drink purchase drivers, by age, November 2019
- Taste and cost factor strongly in store brand choices
-
- Figure 29: TURF Analysis – Store brand food priorities, November 2019
Retail Channels Shopped for Private Label Food and Drinks
-
- Mass merchandisers second only to supermarkets for store brand food/drinks
-
- Figure 30: Retailers for private label purchase, November 2019
- Younger shoppers ripe for online attention
-
- Figure 31: Retailers for private label purchase, by age, November 2019
- Lower-income consumers are drawn to dollar store food and drink
-
- Figure 32: Retailers for private label purchase, by household income, November 2019
Private Label Purchase Behaviors
-
- Private label as a destination
-
- Figure 33: Private label purchase behaviors, November 2019
- Price alone not compelling younger store brand consumers
-
- Figure 34: Private label purchase behaviors, by age, November 2019
Store Brands versus Name Brands
-
- Product caliber is no longer an issue
-
- Figure 35: Consumer opinions of store brands versus name brands, November 2019
- Consumer interest in local
-
- Figure 36: Consumer opinions of store brands versus name brands, any agree, by age, November 2019
- Quality is trumping value with consumers
-
- Figure 37: Consumer opinions of store brands versus name brands, any agree, by household income, November 2019
Store Brands on Retailer Perception
-
- Store brands to influence purchase destination
-
- Figure 38: Store brand on consumer perception of the retailer, November 2019
- Store brands drive consumers, particularly younger shoppers
-
- Figure 39: Store brand on consumer perception of the retailer, any agree, by age, November 2019
- Price prompts purchase, loyalty demands quality
-
- Figure 40: Purchasing store brand food/drinks – CHAID – Tree output, November 2019
- Specialty is synonymous with premium brands
-
- Figure 41: Purchasing store brand food/drinks – CHAID – Tree output, November 2019
Private Label Opportunities
-
- Consumers are hungry for more PL
-
- Figure 42: Opportunities for private label, November 2019
Private Label Food/Drink by Food/Drink Consumer Segmentation
-
- Food and drink consumer segmentation
-
- Figure 43: Food/drink consumer segmentation of private label food/drink, September 2019
- Healthy appeal to Quality Seekers
-
- Figure 44: Retailers for private label purchase, by food/drink consumer segmentation, November 2019
- Adventure Eaters seek natural
-
- Figure 45: Store brand purchase habits, by food/drink consumer segmentation, November 2019
- Value Chaser private label purchase driven by more than cost
-
- Figure 46: Private label food/drink purchase drivers, by food/drink consumer segmentation, November 2019
- Price could lure Time Savers, though at a cost
-
- Figure 47: Food/drink brand purchase habits, by food/drink consumer segmentation, November 2019
Appendix – Data Sources and Abbreviations
-
- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
Appendix – The Market
-
-
- Figure 48: Total US sales and forecast of private label food and drink, at inflation-adjusted prices, 2014-24
- Figure 49: Total US multi-outlet retail sales of private label food and drink, by segment, at current prices, 2017 and 2019
- Figure 50: Total US multi-outlet retail sales and forecast of private label food, at current prices, 2014-24
- Figure 51: Total US multi-outlet retail sales and forecast of private label food, at inflation-adjusted prices, 2014-24
-
- Figure 52: Total US multi-outlet retail sales and forecast of private label drink, at current prices, 2014-24
- Figure 53: Total US multi-outlet retail sales and forecast of private label drink, at inflation-adjusted prices, 2014-24
-
Appendix – Retail Channels
-
-
- Figure 54: Total US multi-outlet sales of private label food and drink, by channel, at current prices, 2017 and 2019
- Figure 55: US supermarket sales of private label food and drink, at current prices, 2014-19
- Figure 56: US sales of private label food and drink through other multi-outlet channels, at current prices, 2014-19
-
TURF Analysis – Private Label Food and Drink Trends – January 2020 Methodology
-
-
- Figure 57: Table - TURF analysis – Store brand food priorities, November 2019
-
CHAID Analysis – Private Label Food and Drink Trends – January 2020 – Methodology
-
-
- Figure 58: Consumption by format – CHAID, November 2019
-
Back to top