News Feature | January 27, 2014

Private Label Brands Are Booming In Dairy And Snack Foods

Source: Food Online

By Alec Italiano, contributing writer

A recent study shows price and value are the main factors for consumers choosing private labels

A new study released by Market Force Information shows that 83 percent of consumers buy private label products if it presents a better value. Dairy products led all products in terms of private label purchases, followed closely by snack foods and cleaning supplies.

The study surveyed 6,600 people across the U.S. and Canada in an attempt to gain insight into consumers’ minds when it comes to private label purchases. Of those surveyed, 60 percent have a household income greater than $50,000 annually and nearly 75 percent of responders to the survey were women. About half of the respondents do not have children. The survey’s numbers appear strong for private label brands, but they are also relatively unchanged since 2011 when a similar survey was conducted. This presents an excellent opportunity for grocery brands to gain some of the market.

Price and value were the top two reasons consumers chose private label brands over grocery brands, according to the Market Force Information survey. This holds especially true in the dairy sector, as 61 percent of consumers say they purchase private labels for dairy products always or most of the time, with 95 percent of them saying price was the primary influence upon that decision.

National brands still hold their share of the market when it comes to cereal, as only 30 percent of responders said they purchase private label cereal brands all or most of the time. Interestingly enough, the 2011 edition of the survey had almost the exact same percentage, 29 percent, of consumers who never bought private label cereals. The survey reveals that coupons play a huge factor in consumers choosing national brand cereals with 17 percent of consumers buying them due to a coupon. Needless to say, if private labels want to compete in the cereal sector, finding a way to introduce money saving methods in purchasing their products will certainly help.

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