More than half (55%) of shoppers have increased their purchases of private label products over the past year, according to the 2024 Power of Private Brands report from FMI—The Food Industry Association. This compares to 28% of consumers who said they purchased more national brand products during the prior 12 months.
"Our research suggests that private brands are no longer just about offering a cost-effective alternative; they are about delivering quality, creating new experiences, and highlighting unique values that resonate deeply with today's consumers," Steve Markenson, vice president of Research & Insights for FMI, said in a statement. “In turn, retailers have recognized their portfolio serves as a strategic differentiator and an extension of their brand narrative to shoppers.”
Motivating factors such as less expensive/sale (cited by 71%) and good value (72%) remain the top reasons consumers say they purchase private label items. However, other reasons such as quality (42% in 2024 vs. 30% in 2023) and taste (33% in 2024 vs. 26% in 2023) played a larger role for shoppers when choosing private label products.
Private brands are also having a greater influence on where consumers shop. In the survey, 53% of respondents said a store's private brands influenced their store choice, up from 35% in 2016. Also, 55% of respondents said a grocery store’s primary store brand is “very” or “extremely important” in shopping at that given store.
Some 51% said they were “very likely” to continue purchasing store brand products should the price of groceries decrease, up from 42% in 2023. Just 7% said they either were “not very likely” or “not likely at all” to continue buying private label products if grocery prices decrease.
On average, consumers also reported they will purchase more store brand products in the year ahead in an average of eight categories. The top eight sections are paper products, refrigerated dairy foods, frozen foods, packaged breads, milk or non-dairy substitutes, salty snacks, baking/cooking items, and (tie) condiments and packaged/canned foods.