63.6% Agree Store Brands are Just as Good
Shoppers want more fresh food options and less work in the kitchen ÛÒ and that could mean a boost for private label sales, according to a nationwide study of buying behavior and consumer preferences in deli, dairy and fresh bakery departments, in “Store Brands Could Grow as Shoppers Seek Fresh.”
The study was commissioned by the Private Label Manufacturers Association and covered attitudes of 800 primary grocery shoppers in the U.S.
More than half of respondents in the study said they buy more private label now than they did five years ago, and 44% said they currently buy store brands either always or frequently. Frequency of buying is even higher in deli, dairy and bakery, where it reached 47%.
ÛÏConsumers are making it clear they want convenience and speed in meal preparation,Û said PLMA President Brian Sharoff, ÛÏand this is creating highly profitable opportunities for retailersÛª store brands to respond with their own brands.Û
In the study, shoppers of deli, dairy and bakery were asked, ÛÏWhich products would you like to see more of?Û The results were as follows:
- In deli, convenience was the number one demand, with four in 10 respondents opting for ÛÏmore items that can save me time at home.Û Following closely were ÛÏmore restaurant quality itemsÛ and ÛÏheart healthy items, such as low sodium.Û
- In the dairy department, a better assortment topped shoppersÛª desires, with 35% of survey respondents wanting to see more variety in general, and 38% saying they would like greater variety of cheeses in particular.
- When it came to the bakery, shoppers had an eye on freshness and health issues foremost, with 31% saying they would like more items baked on-site and 31% opting for products containing ÛÏless fructose, sugar, corn syrup and bad fats.Û With one in four shoppers, more nutritional and freshness information, greater variety of portions, and more emphasis on healthy ingredients were also in demand.
Among the improvements shoppers would most like to see at the supermarket perimeter, product sampling and demonstrations ranked high across all three departments. In the deli, faster service and more nutritional information about deli products were mentioned.
“Deli, dairy and bakery are among the fastest growing sections at the annual Private Label Trade Show,Û added PLMAÛªs Sharoff. ÛÏWe are seeing more companies in these categories who are interested in exhibiting than ever before. One thing we have learned from past shows, is that when companies want to exhibit, it usually means growth in the categories at retail.Û
According to AudienceSCAN, 63.6% of adults agree that store brands are usually just as good as national brands. 14% of Store Brand Buyers have children aged 13 to 17, so they’re probably looking to save money where they can but still provide yummy snack options to their ravenous growing kids. During the past month, 40% of Store Brand Buyers used the web to find coupons or discount codes, so try some private-label digital coupons on for size with your clients. Also worth looking into: 13% uploaded a grocery or shopping receipt for cash back on a mobile app (like Checkout 51 or SavingStar) in the past 6 months.
AudienceSCAN data is available as part of a subscription to AdMall for Agencies. Media companies can access AudienceSCAN data through the Audience Intelligence Reports inåÊAdMall.