The consumer research platform Attest has released a report that found 73% of U. S. consumers “have no intention of reverting to more household (and expensive) names” once economic pressures stabilize.
Attest’s founder and CEO Jeremy King said, “American shoppers have changed in behavior and have acquired a real taste for private-label brands due to inflation’s impact on the cost of grocery and household products.” he said.
“This poses a significant challenge to well-known brands that can’t compete on price and who may end up the losers here as these shifts in shopping habits may be permanent for several important sub-segments,” he added.
Attest’s 2023 U.S. food & beverage trends report survey said the private label phenomenon was happening as most consumers have turned toward less expensive store brands as the cost of living has jumped.
The report found private label brands have benefitted from the rising cost of living, with more than 58% of U.S. consumers saying they are “very likely” to purchase store brands to brand names, and another 27% were “somewhat likely,” per Attest’s survey of 2,000 consumers that concluded in January.
Further, 89% of American consumers are bargain hunting when grocery shopping, with 42% saying they visit multiple sites in person to find the best deal. King cited this finding as a “new and emerging behavior” among a majority of consumers.
“This puts grocery chains under serious pressure to either offer the best deals that beat other retailers and attract consumers, or to extend their own-label product lines to offer ever-increasing appeal to inflation-weary consumers,” he said.
Attest also found that size of the store did not matter to most consumers and especially discount stores don’t need to be big to be attractive to consumers. Instead, twenty-nine percent of those surveyed said a 20% minimum discount would persuade them to purchase, with 21% saying a 30% discount would do it, while 19% said they would buy with a discount of 10% or less. Additionally, 58% of consumers say advertising helps them stay informed about discounts and deals.