Private Label Foods: What's Driving Purchase? - US - February 2015
“Improvements made to the quality and varieties of store brand foods have not gone unnoticed by consumers. However, there is opportunity to increase category participation among older consumers, and to introduce more premium product lines featuring organic, non-GMO, and/or vegetarian products which consumers feel are lacking in the current market.”
Amanda Topper, Food Analyst
This report answers the following questions:
- Are shoppers' perceptions of store brands improving?
- Where are key areas to grow the category?
- How can retailers boost purchase among older shoppers?
The quality, variety, and appearance of private label foods continue to improve and consumers are taking note. Shoppers have generally positive perceptions of these products, and some view them as even more innovative than name brands. Despite shifting perceptions, some consumers, especially older consumers, still perceive private label foods as generic or inconsistent in quality. Looking ahead, category growth will rely on expanding product lines with more premium options, and reaching older consumers who tend to purchase fewer private label foods.
Mintel here provides a comprehensive analysis of the following factors that have the greatest potential to impact the category’s performance:
The most influential factors when shoppers buy private label food products
Areas of improvement that can be made to private label food products
Frequency of private label food purchases and top factors consumers consider when making a purchase
The most important packaging factors that do and could influence consumers to purchase more private label food products
Consumer attitudes and behaviors toward private label food products, including purchase preferences, perceptions of product quality, ingredients, and overall trust
Many shoppers already recognize the enhancements made to store brand foods including improved quality and variety of options, and product innovation. This is especially the case among younger consumers, lower-earning households, and Hispanics.
Future category growth will rest on manufacturer and retailer ability to meet shopper preferences for organic and BFY (better-for you) products, more appealing packaging, and consistent quality. Doing so can increase shopper loyalty and retailer profit margins, while helping retailers stand out from their biggest competitors. Reaching older consumers and changing their perceptions of the category is another area of opportunity, as long as retailers can prove the value of their products, and gain a sense of trust that is so important to this category.
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