Brief

Study: Shoppers purchase private label items but don't always trust them

Dive Brief:

  • Trace One conducted a survey that showed that 44% of consumers don’t buy private label brands because they trust national brands more, according to Grocery Headquarters
  • The survey showed that overall, consumers were mostly positive about private label products. While 80% of consumers say private label products meet expectations, only 23% say they trust the safety. 
  • When it comes to responsibility for store brands' quality and safety, 46% of consumers said the manufacturer and 34% said the retailer.

Dive Insight:

Consumers obviously love the benefit that comes from private labels. A study by the National Bureau of Economic Research showed that shoppers could save approximately $44 billion a year by buying store brand products over national brands.

Private labels have made a big swing in sales over the last few years. The Private Label Manufacturers Association’s 2016 Private Label Yearbook showed that store brand sales hit a record high of $118.4 billion in 2015, capturing 17.7% of the total market.

At grocery chains, total sales of private brands have increased $1.1 billion over the last two years as retailers are investing more in them. This includes investing in packaging, design and ingredients.

The only problem seems to be building and maintaining consumer trust. Offering specials and tastings at the store might get more consumers to buy the products. Once consumers get into the habit of going private brand, that trust will build over time.

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Filed Under: Manufacturing Grocery Packaging / Labeling
Top image credit: Aranami