96% of consumers buy private label groceries, according to study
Private label dairy outsells other types of products
Nearly all consumers buy private label products when grocery shopping, according to a new study of 6,600 consumers conducted by Market Force Information (www.marketforce.com), a worldwide leader in customer intelligence solutions. Of the categories studied, dairy products were the most frequently purchased private label groceries, while snacks ranked second, and cereal and cleaning supplies tied for third.
Market Force’s grocery study was designed to uncover how consumers think about and purchase private label grocery products. It also looked at consumer preferences and buying behaviors across specific private label food categories. Private label products continue to be popular, though there is still substantial opportunity for grocery brands to increase wallet share. Market Force found little change in the frequency that consumers are purchasing private label when compared with its 2011 grocery study. Price and value were given as the top two reasons for buying private label in the four categories studied.
Eighty-three percent of consumers indicated that they sometimes buy private label brands if the product is better or it offers a higher value than the national brand alternative in a particular category. Thirteen percent said that they always buy private label if one is offered in their desired product category, and only 4% are either unaware of private label products or never purchase them because they believe national brands offer a better value and product. See Graph 1.
Graph 1: How consumers think about & purchase private label brands when grocery shopping