Value and Taste Fuel Ongoing Private Label Growth

Value and Taste Lead Private Label Growth Drivers

Consumers Choose Store Brands for Quality and Value

New research reveals that value and taste are the key private label growth drivers fueling store brand popularity. Shoppers today recognise private labels more than ever and actively buy them for quality, trust, and affordability.

A recent survey by FMI – The Food Industry Association – shows that 89% of shoppers say their main store offers private label products. The same percentage already have store brands at home.

Consumers also associate private labels with positive words like “quality,” “value,” and “good.” Their perception of store brands continues to improve each year.

Purchase Habits Show Clear Growth

The survey shows private label products are gaining momentum. Nearly one in four shoppers buy more store brands than before.

Meanwhile, only 4% report buying fewer store brands, compared to 19% buying fewer national brands. The trend is clear.

Looking ahead, more than 48% of consumers say they plan to increase private label purchases. Only a small percentage plan to reduce them.

What Drives Shoppers to Store Brands

The top private label growth drivers are value, taste, and brand trust. Shoppers want products that deliver great quality without high prices.

FMI’s Tom Cosgrove explained, “Price matters, but it’s now ranked fourth. Value and taste make shoppers proud to buy store brands.”

The survey found:

• 78% buy for the best value
• 59% choose based on taste
• 56% trust store brand quality
• 54% buy for affordability
• 45% value convenience

These factors show why private label growth outpaces national brands, even if grocery prices drop.

Strong Sales Support the Trend

Private label sales data reflects this growing demand. According to Circana, store brand dollar sales rose 5.4% in the past year.

In contrast, national brand sales grew only 2.2%. Unit sales also increased for private labels, while national brand unit sales declined.

Categories like refrigerated seafood, breakfast meals, chocolate candy, and dinner sausage saw some of the biggest growth. Refrigerated pizza led unit sales, rising 31.7%.

Conclusion

Taste, value, and trust continue to be powerful private label growth drivers in today’s market. Consumers are choosing store brands with confidence.

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