High inflation has made buying everyday goods—from yogurt and ketchup to trash bags and laundry detergent—more taxing on households across the country.
As a result, a growing number of shoppers are reaching for store brands, also known as private labels, to help ease the cost of keeping their refrigerators full and pantries stocked.
Last year, U.S. sales of store brands rose 11.3% compared to 2021, resulting in record-breaking revenue of $228.6 billion, according to the Private Label Manufacturers Association. National brands, meanwhile, climbed 6.1% to $981.1 billion.
“Shoppers are increasingly likely to buy a store brand versus a national brand now than they were six months and one year ago,” said Aliza Freud, CEO of influencer marketing agency SheSpeaks.
According to a SheSpeaks survey of more than 1,200 U.S. women, conducted in partnership with The Mars Agency, price is only one of several reasons shoppers might switch brands.
Nine in 10 participants, for instance, said they feel it’s important to take advantage of loyalty programs. Many also showed concern for the nutritional value of food and beverages. Product availability and unique flavors play a role as well.
Overall, fewer than 1 in 3 consumers reported being certain about which brands they’ll purchase before visiting a store. That means the majority are open to changing their minds anywhere between writing a grocery list to scanning that final item at the cash register.
As Freud put it: “Shoppers can be swayed.”
This story first appeared in the March 2023 issue of Adweek magazine. Click here to subscribe.
