Trends in Private Brands
By Shari Steinbach, MS RDN, RDBA Contributing Editor
The FMI 2022 Power of Private Brands report, found that 40% of consumers have purchased more store brands since before the onset of COVID-19, and three-quarters of those shoppers aim to continue putting private brands in their cart. While saving money is a key priority influencing the increase in private brand purchases, other factors such as quality, taste, health and sustainability are also driving consumers to private brands. Experts across the world predict that these post-pandemic times will create opportunities for retailers to differentiate their private label products and promote their capabilities. Here are four trends that will be shaping the future of the private brand business.
- Innovation online and offline. Amazon will continue its strong push into grocery and private brands, which will present more competition for traditional supermarkets. Mainstream retailers must continue to innovate and invest heavily in technology to support online growth to increase their private brand fulfilment and delivery capabilities as a strong omnichannel presence is vital. As more retail RDNs expand their presence into ecommerce, private brands should be included in wellness promotions and programming.
- Offering local solutions. Consumers want more transparency from companies and they want to understand who made their products and how. If shoppers can feel like they are helping their community by consuming more locally produced products they feel good. Retailers should demonstrate how they are enriching local economies, communities and the environment by building local values into private brand innovation and offerings.
- Provide in-home dining inspiration. With the wave of in-home meal preparation, shoppers are also looking for products that meet their meal planning needs. Having a wide range of private label products to choose from and finding items that provide personalized health attributes and unique tastes are important. Retail dietitians will play a key role educating customers on simple recipes and affordable and nourishing meal plans that highlight private brands.
- Health and sustainability benefits. Consumers have a heightened concern for their health and that of the planet. From sustainable sourcing to environmentally-friendly packaging, shoppers are looking for information that guides them towards responsible consumption. Dietitians can work with their private brand team to understand what sustainable priorities are important to shoppers and can also include stories about private brand sustainability efforts through their work.