Private Labels Are Growing Part Of CPG Market, Study Reveals

In the United States, 32.2 percent of shoppers said they are currently buying more private-label brands, with only 6.6 percent of them saying they plan to return to name brands, according to a 2016 edition of “The Checkout” study. Results of the survey revealed 11.9 percent of respondents said they are buying fewer store brands, while 17.4 percent are buying more private labels and will keep on buying them. Also, 8.2 percent of respondents said they are buying more store labels and plan to buy even more. Data also revealed a decline in consumer perception of name brands as offering more new products, varieties, and innovations, from 56 percent of respondents in 2010 to 45 percent in 2015. Among African-American consumers, more are likely to prefer name brands, with respondents saying they are more likely to perceive name brands as of higher quality than their private-label counterparts. Results of the study offers some insights for marketers and retailers, including the fact that private labels are here to stay, consumers see private labels as inexpensive options with good-enough or comparable quality, and that African-American shoppers offer a potential area for growth.