The FMI 2022 Power of Private Brands report, states that over 40% of consumers have purchased more store brands since before the global pandemic, and three quarters of those shoppers will continue to do so.
Price continues to incent customers to purchase store brand products and continues to be a driver as inflation squeezes customers’ wallets. To put it in perspective, The Bureau of Labor Statistics reports that overall grocery prices were 12% higher last month than the same time last year.
According to the report, 63% of private brands shoppers consider private brands to be a good value and 55% buy private brands because they are less expensive, additional factors are driving consumer affinity for these products, including quality, taste, sustainability and contributions to health and well-being.
While consumers are buying private brands based on price right now, this moment in time represents a great opportunity for retailers to bring innovation to their private brand strategy and development to secure customer loyalty for the long haul.