Private Labels On Par With National Brands At The Grocery Store

Private label companies continue to introduce better-for-you products and more attractive packaging, all while being easier on consumers' pockets.

Recent Mintel research found that 44% of grocery shoppers believe store brand products are of better quality today than they were five years ago. According to the study, 60% of primary grocery shoppers usually or sometimes purchase private label bread or baked goods and 58% usually or sometimes purchase store brand cheese.

The private label market has enjoyed sales growth in recent years that isn't likely to decrease in the near future, says the report.

39% of respondents who identify themselves as the primary grocery shopper of their household say they would recommend a store brand product. And, 34% say they don't feel like they're giving anything up (such as flavor or prestige) by using store brands. Only 19% believe it's worth paying more for name brand products.

Fiona O'Donnell, senior analyst at Mintel, says "... with the exceptions of drinks and personal care products, most consumers believe that private label options are of equal quality to nationally-branded products..."

In fact, 62% of consumers believe there's no difference in quality between name and store brand dairy products. 61% say there is no difference when it comes to caned or shelf-stable food products, and 56% think private label and name brand household cleaners are of equal quality.

O'Donnell concludes that "...even though the recession has ended, and consumers may be in a better position financially to return to name brands, it's likely that many will continue to buy store brand staples that are of equal quality."

For more information from Mintel, please visit here.


2 comments about "Private Labels On Par With National Brands At The Grocery Store".
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  1. Lisa Merriam from Merriam Associates, January 31, 2011 at 8:25 a.m.

    But consumer opinion doesn't match behavior. Store brands still earn the minority share of shoppers' purchases across categories: (URL removed by MediaPost)

  2. Rob Frydlewicz from DentsuAegis, January 31, 2011 at 10:29 a.m.

    My neighborhood grocery store charges such outrageous prices (of course, it's in Manhattan) that I finally noticed the huge savings from store brands (often around 50%). After testing the waters I now regularly buy a whole list of these products including microwave popcorn, frozen veggies, soda & cheeses.

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