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Price isn’t the only reason consumers buy private label foods and beverages, according to a new survey by the Food Industry Association.

Rachel French

August 10, 2022

2 Min Read
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Private label products are no longer viewed as second-rate substitutions. According to the Food Industry Association’s (FMI) 2022 Power of Private Brands report, more consumers are choosing private labels over popular brands because, well, they like the products. 

The survey found almost half (42%) of consumers who are buying more private brands said they like the taste of private brand products. In fact, taste of private label products is on par with competing brands, according to consumers, who rank the importance of taste of both private and name brands equally at 78%. 

Consumers also seek out and buy private label brands according to quality. Nearly half (43%) of shoppers buy private labels because they like the quality. Two-thirds (66%) consider the quality of private label brands when deciding whether to purchase them.  

Of course, price is still a factor that drives private label purchases—especially amid record-high inflation that’s deeply impacting the CPG industry

More than half (55%) of consumers reported they buy private label brands because they cost less. Plus, 63% of consumers who buy private label brands consider private brands to be a good value. 

In fact, prices and product shortages may be the reasons consumers are introduced to private labels, but it’s not why they repurchase them. The survey showed 40% of consumers have bought more private labels since before the pandemic started, and three-quarters of these shoppers plan to continue this trend. 

“While we know price and out-of-stocks have led consumers to try more private brands, we’re seeing these factors aren’t the only reasons shoppers continue to purchase private brand products,” Doug Baker, vice president of industry relations for FMI, said in a press release.  

One-fifth (20%) of consumers find private brand products align with their health needs, and 23% like the ingredients that are used in private label products.  

Sustainability, in addition to health, is also driving consumers to private labels. Shoppers reported buying more private brands that have convenient or resealable packaging (19%) and are better for the planet (14%). 

Consumers are also looking to private brands for excitement and innovation—not simply as a substitute for a popular brand. One-fifth (20%) of shoppers said they’re more inclined to purchase private brands if they “look interesting,” while 13% purchase private labels they perceive as “innovative or unique.” 

[Editorial photo credit: defotoberg / Shutterstock.com]

About the Author(s)

Rachel French

Contributing editor

Rachel French joined Informa’s Health & Nutrition Network in 2013. Her career in the natural products industry started with a food and beverage focus before transitioning into her role as managing editor of Natural Products Insider, where she covered the dietary supplement industry. French left Informa Markets in 2019, but continues to freelance for both FBI and NPI.

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