Private Label Here to Stay

CHICAGOThe private label market has been growing recently with no signs of slowing as customers are happier with store brand goods and enjoy the lower prices. Mintel research found 34 percent of respondents who identify themselves as the primary grocery shopper of their household say they dont feel like theyre giving anything up (such as flavor or prestige) by using store brands. Only 19 percent believe its worth paying more for name brand products. Additionally, 44 percent of grocery shoppers believe store brand products are of better quality today than they were five years ago, and 39 percent say they would recommend a store brand product.

With the exceptions of drinks and personal care products, most consumers believe private label options are of equal quality to nationally-branded products," said Fiona ODonnell, senior analyst at Mintel. The lack of perceived difference can be attributed, in part, to the fact that many retailers have introduced premium private label products in recent years that rival their branded counterparts in flavor and nutritional value, as well as the packaging design and shelf placement."

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

 Private label brands are overcoming the stigma once associated with generic products," added Fiona ODonnell. Even though the recession has ended, and consumers may be in a better position financially to return to name brands, its likely that many will continue to buy store brand staples that are of equal quality."

 According to Mintel, 60 percnet of primary grocery shoppers usually or sometimes purchase private label bread or baked goods and 58 percent usually or sometimes purchase store brand cheese.