A new report by the Food Marketing Institute (FMI), cited by StoreBrands.com, reveals that price is not the only reason shoppers are buying more store-brand products.

Increased Purchase Frequency

Consumers are buying private label products more frequently. In recent years, inflation has been the main factor driving shoppers to choose private label products as they sought to save money and stretch their budgets.

However, as prices moderate, consumer appetite for private brands is expected to remain strong, according to a recent survey conducted by FMI for the Power of Private Brands: What’s Ahead for Shoppers and Private Brands in 2024 report.

This year’s analysis by FMI reveals an acceleration in private brand purchasing habits. Nearly 7 in 10 (69%) grocery shoppers said they buy store brands at least occasionally, with 46% buying private brands most or all of the time.

Additionally, approximately 60% of shoppers said they buy private brands “much more” or “somewhat more” in the past year, compared to just 26% for national brands.

Continued Private Label Purchases

Overall, 90% of shoppers say they are likely to continue buying private brands if inflation or food prices decrease, indicating growing loyalty to store brands.

“While inflationary pressures may have been the catalyst driving consumers to try more private label products in recent years, shoppers have clearly come to appreciate the quality and value offered by store brands,” said Doug Baker, Vice President of Industry Relations at FMI. “The overwhelming majority of shoppers tell us they intend to continue buying private brands in the future, even if food prices normalize.”

Baker adds that shoppers are motivated to buy store brands because they like the quality and taste of the products, not just the affordability and value offered by private labels.

“This growing trust and loyalty that consumers have developed for private brands highlight how these products have truly evolved to become an extension of the retailer's brand and value proposition, which is reflected in how private brands also play a larger role in how consumers decide where to shop for food,” he said.

Price (68%) and good value (67%) continue to be the main reasons shoppers cite for buying more private label items.

Consumers Appreciate the Quality of Private Label Products

However, 65% of shoppers mentioned a reason other than price and value that motivates their private label purchases. Among these, shoppers cited quality (30%), taste (26%), and meeting their food solution needs (16%) as some of the factors driving their store brand purchasing decisions.

Notably, more than half of those shoppers who said “quality” is the reason for buying private label products remarked that the store brand item is comparable to a national brand.

Grocery shoppers also told FMI that private brands are as good as name brands in several key areas.

When asked which type of brand is better, 59% of shoppers said private and name brands are equal in providing detailed product information; 57% said they consider private brands to be as healthy as their manufacturer brand equivalents; and 63% said the private brand is as good for the planet as the national brand.