Shoppers Choose Private Brands for More Than Price: Report

In this year’s "Power of Private Brands" report, FMI - The Food Industry Association is detailing the myriad reasons shoppers choose private brand grocery products – and those reasons are more broad than they once were. While 55% of consumers say they buy private brands because they are less expensive, quality, taste, sustainability and health and well-being are also driving purchases.

“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,” said FMI VP of Industry Relations Doug Baker. “Less than 2% of shoppers say the only reason they purchase private brands is because other products were out-of-stock. When asked about 14 product attributes, shoppers identified an average of four reasons for choosing private brand products. Clearly shoppers’ interest in private brand products extends beyond just price.”

Among the consumers buying more private brands, 42% say they like the taste of private brand products, and they equally rank the importance of taste of private brands and name brands, at 78%, according to the report. Some 66% of shoppers say quality is important when choosing private brand items, while about 43% say they buy store brands because of their quality.

Other findings include that 24% of shoppers purchasing more private brands say they “meet their meal solution needs” and 23% find their ingredients appealing. Some 20% said private brand products may fit their health needs. 

The report also found that more shoppers are buying private brands for sustainability factors, with 19% leaning in for convenient or resealable packaging and 14% believing they are better for the planet. Shoppers are also more inclined to purchase private brands if they “look interesting” or if they’re believed to be “innovative or unique.”