Private Label Food and Drink Trends - US - February 2017

Private Label Food and Drink Trends - US - February 2017

Mar 2017 Mintel PackagingN/A Price :
$ 3995

Private label food and drinks category sales declined by -2.2% from 2015-16 and are forecasted to continue to decline into 2021. Increased confidence in the economy may lead many consumers to opt for name brands over store brands, especially for products located in the brand-centric center store area. Opportunities for retailers to elevate the perception of their store brands will come through product innovation, sampling, and increased ingredient transparency.

Table of Content

Overview

What you need to know
Definition

Executive Summary
The issues
Store brands decline, drop expected to continue
Figure 1: MULO sales and forecast of private label food and beverages, at current prices, 2011-21
Perimeter store brands grow, center of store decline
Figure 2: Private label categories, any purchase, November 2016
Private labels struggle with taste, national brands compete on price with coupons
Figure 3: Reasons for decreased store brand purchase, November 2016
The opportunities
Consumers notice quality improvements, still room for growth
Figure 4: Private label shopping attitudes, November 2016
Simple, healthy ingredients and resealable packaging
Figure 5: Private label features, ingredients and packaging, November 2016
Core consumers are diverse
Figure 6: Private label any product category, purchase all of the time, by generation, parental status, and race and Hispanic origin, November 2016
What it means

The Market – What You Need to Know
Private label category declines, driven by falling unit sales
Food segment holds higher share, drinks to decline at greater rate
Increased food and drink shopping options
Growing consumer confidence, declining food prices limit private label

Market Size and Forecast
Private label sales slow, further declines forecasted
Figure 7: MULO sales and fan chart forecast of private label food and beverages, at current prices, 2011-21
Figure 8: MULO sales and forecast of private label food and beverages, at current prices, 2011-21

Market Breakdown
Private label food maintains lion’s share of category
Figure 9: MULO sales of private label food and beverages, by segment, 2016
Private label beverages expected to decline at a greater rate than food
Figure 10: MULO sales and forecast of private label food and beverages, at current prices, 2011-21

Market Perspective
Myriad of options
Online competition
Private label centric stores
Amazon enters brick and mortar
Fresh, less-processed products found at perimeter of store

Market Factors
Increased confidence, falling food prices stifle private label
Figure 11: Consumer Sentiment Index, January 2007-September 2016
Households are smaller but future growth is expected
Figure 12: Households, by presence of own children, 2006-16
Core consumers experience life-changing stages
Figure 13: Population by generation, 2017
Hispanic and Asian consumers among heaviest private label users
Figure 14: Population growth, by race and Hispanic origin, 2012-22

Key Players – What You Need to Know
Various private label categories prosper while others struggle
Tiered programs provide private label for everyone
Store brands communicate health through simplicity and claims
International inspiration
Packaging improvements

What’s Working?
Categories on the perimeter grow
Tiered programs
Value
BFY
Premium
Ingredient claims
Figure 15: Private label free-from and ingredient claims, by year, 2011-16
Keep it simple
Ovation for organic
Gluten-free for all
Around the world
Packaging reboot
Creative packaging that stands out from national brands
Packaging with a sneak peak

What’s Struggling
Drinks falling flat
Figure 16: Total and private label MULO beverage sales, and private label share of total, at current prices, 2011-15
Center of store categories struggle
Figure 17: Total and private label MULO food sales, and private label share of total, at current prices, 2011-15

What’s Next?
Upgraded packaging
Packaging on the move
Figure 18: Private label food and drink packaging claims, by year, 2011-16
Strategic, clean packaging design
Do it yourself
Private label takes another play from foodservice game plan
Figure 19: Private label food and drink limited-edition claims, by year, 2011-16
GMO-free
Figure 20: Private label GMO-free launches, by year, 2011-16
Store brand promotion outside of store
Figure 21: H-E-B – “Brothers” – June 2016
New players, announcements in the private label market
Lidl heats up the competition
Aldi announces sweeping health initiatives
Amazon launches private label
Whole Foods grows 365

The Consumer – What You Need to Know
Perimeter store brands purchased most frequently
Quality improvements drive increased purchase, inferior taste drives decreased purchase
Consumers agree store brands help save money as they compare prices
Simple, familiar ingredients important to consumers

Food Stores Shopped Most Often
Consumers shop at supermarkets and mass merchandisers most often
Figure 22: Food stores shopped most often, November 2016
Age a key indicator of channels shopped at for food and drink
Figure 23: Channels shopped most often, any rank, supermarkets and mass merchandisers, by age, November 2016
Figure 24: Channels shopped most often, any rank, stores other than supermarkets and mass merchandisers, by age, November 2016
Income plays essential role where households shop
High-income households shop at wider range of channels
Figure 25: Channels shopped most often, any rank, by household income, November 2016
Lower-income households shop convenience, value
Figure 26: Food stores shopped at most often, any rank, by household income, November 2016
Asian and Hispanic consumers frequent a wide variety of channels
Figure 27: Food stores any rank, by race and Hispanic origin, November 2016

Store Brand Purchase
Perimeter store brand Items most likely to be purchased all of the time
Figure 28: Private label categories, any purchase, November 2016
Millennials aged 25-34 most likely to purchase private label all the time
Figure 29: Private label any product category, purchase all of the time, by age, November 2016
Parents most likely to purchase every store brand category
Figure 30: Private label categories, any purchase, by parental status, November 2016
Hispanics most likely to buy across store brand categories
Figure 31: Private label categories any purchase, by Hispanic origin, November 2016

Store Brand Purchase Drivers
Close to a quarter of consumers report increased purchase of store brand
Figure 32: Private label shopping behavior, purchasing more or less than year ago, November 2016
Improved quality, budget change drive increased purchase
Figure 33: Reasons for increased store brand purchase, November 2016
Taste “inferiority” detracts from purchase
Figure 34: Reasons for decreased store brand purchase, November 2016
Parents increasing private label habits
Figure 35: Reasons for increased store brand purchase, by parental status, November 2016

Store Brand Behaviors
Over two fifths of shoppers compare prices between store and national brands
Figure 36: Private label shopping behavior, November 2016
Consumer identification of store brand products
Younger parents look for new
Figure 37: Private label shopping behavior, look for new store brands, by parental status and age, November 2016
Parents more likely to buy economy store brand versions
Figure 38: Private label shopping behavior, buy economy versions of store brands, by parental status and household size, November 2016
Parents and Hispanics most likely to shop at private label-only stores
Figure 39: Private label shopping behavior, frequently shop at stores that carry only their own store brands, by parental status and Hispanic origin, November 2016

Store Brand Attitudes
Most consumers agree store brands are an effective way to save money
Figure 40: Private label shopping attitudes, November 2016
Multiple categories perceived to be just as good as national brands
Figure 41: Private label categories purchased, store brands are just as good as national brands, any agree, November 2016
Online retailers show potential for premium
Figure 42: Food stores shopped, by private label attitudes, any agree, November 2016
Millennials find store brand quality better
Figure 43: Private label shopping attitudes, any agree, store brand quality, by generation, November 2016
Sampling, transparency, premium interest younger consumers
Figure 44: Private label shopping attitudes, any agree, by generation, November 2016
Parents have favorable value perception of private label food and drinks
Figure 45: Private label shopping behavior, any agree, by parental status, November 2016
Hispanics give good marks, want transparency
Figure 46: Private label shopping behavior, any agree, by Hispanic origin, November 2016

Store Brand Features
Natural, recognizable ingredients are key
Figure 47: Private label features, ingredients and health claims, November 2016
Figure 48: Private label features, November 2016
Claim importance varies by channel type
Figure 49: Food stores shopped at, by interest in private label features, November 2016
Younger consumers more interested in ingredients, packaging
Real ingredients encourage young consumers to buy store brand
Figure 50: Private label features, ingredient features, by generation, November 2016
Younger adults seek packaging features
Figure 51: Private label features, packaging features, by generation, November 2016
Parents indicate high interest across potential store brand improvements
Figure 52: Private label features, by parental status, November 2016
Asians are core organic seekers
Figure 53: Private label features, organic, by race, November 2016
Figure 54: Private label features, all-natural and resealable packaging, by Hispanic origin, November 2016

Consumer Segmentation
Figure 55: Store brand food and drink clusters
Value Shoppers
National Brand Leaners
Store Brand Enthusiasts

Appendix – Data Sources and Abbreviations
Data sources
Sales data
Fan chart forecast
Consumer survey data
Consumer qualitative research
Abbreviations and terms
Abbreviations
Terms

Appendix – Market
Figure 56: Total US sales and forecast of private label foods and beverages, at inflation-adjusted prices, 2011-21
Figure 57: MULO sales and forecast of private label foods and beverages, by segment, at current prices, 2011-21
Figure 58: MULO sales and forecast of private label foods and beverages, at current prices, 2014 and 2016
Figure 59: MULO sales and forecast of private label food, at current prices, 2011-21
Figure 60: MULO sales and forecast of private label food, at inflation-adjusted prices, 2011-21
Figure 61: MULO sales and forecast of private label beverages, at current prices, 2011-21
Figure 62: MULO sales and forecast of private label beverages, at inflation-adjusted prices, 2011-21
Figure 63: MULO sales of private label foods and beverages, by channel, at current prices, 2011-16
Figure 64: MULO sales of private label foods and beverages, by channel, at current prices, 2011-16
Figure 65: US supermarket sales of private label foods and beverages, at current prices, 2011-16
Figure 66: US sales of private label foods and beverages through other MULO channels, at current prices, 2011-16

Ask for discount before buying this report

Please fill the enquiry form below.

  • Full Name *
  • Your Email *
  • Job Title
  • Company *
  • Phone No. * (Pls. Affix Country Code)
  • Country :
  • Your Requirement
  • Security Code *
* denotes fields which must be completed

Buy This Report


Select License Type :

$ 3995
$ 3995

Do you wish to check sample of this report?

Have Query?


Research Assistance

For Enquiries, Call :

+1-800-998-4852US Toll Free

Email : sales@marketresearchhub.com

Back To Top