Frozen Sales Bolster Private Label Growth in Q3 2019

private label

Private label frozen and beverage segments are outpacing total category and national brand sales in Q3 2019, a recent IRI Consumer Connect Survey has revealed.

According to the study, overall private brand dollar sales in the U.S. grew 3.8% in 2019, twice the rate of national brands. IRI examined how such shopping behaviors and attitudes are affecting private label sales in its Q3 2019 Consumer Connect report.

“Shoppers are buying private brands because it makes them feel good to save money without sacrificing taste, selection or quality. The improved customer perception of private label value is having a growing influence on store choice, with many leading retailers offering premium private label selections,” said Joan Driggs, vice president of Content and Through Leadership.

Across generations and income groups, consumers are buying private label, with 99.9% of shoppers purchasing private brands today. Faced with a vast selection of consumables in a typical store, consumers see private label as a go-to solution in the stores they trust. As a result, traditional retailers are doubling down on their store brand strategy and are offering more premium selections, says IRI.

Younger, senior and low- to middle-income consumers are key targets for private label growth. Millennials demonstrate the highest adoption of private label products, increasing 10% in 2019 from 2018, outpacing their adoption of national brands. Millennials are moving into higher-spending years, so demonstrating value, quality, and innovation will be key to continued adoption.

“Private label is experiencing growth that outpaces that of national brands and has an increasing influence on store choice among consumers, especially among Gen Z. However, there remains room for improvement. Packaging images has been found to be a purchase barrier among Millennials and light buyers. In addition to packaging, retailers should continue to find ways to innovate. Don’t wait for national brands to lead with trends, such as plant-based, functional and wellness products,” concludes Driggs.

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