Understanding how different age groups shop private label can help you tailor your offerings to their needs and win over a wider customer base in an increasingly competitive market. The days of generic store brand labels are fading fast. Today’s private label products are often indistinguishable from national brands in terms of quality, and sometimes even surpass them in innovation.
Overall Trend: More and more people are buying private label brands (store brands). In fact, according to a recent study by PDG Insights [reference PDG Insights study], 98% of U.S. households purchase at least one type of private-label product. This trend is expected to continue as consumers seek value and quality without sacrificing taste or convenience.
The most popular private label categories are household staples like canned goods, beverages, dairy, paper products, and bread. These are all essential items that consumers consistently purchase, making them prime targets for private label innovation. Here’s how grocers can win in these categories:
Younger shoppers (18-35) are more likely to choose a grocery store based on the quality and variety of their private label offerings, compared to older generations who prioritize value. This suggests a changing perception of private label brands, which are now seen as offering competitive quality alongside affordability.
Generational Breakdown:
The private label landscape is constantly evolving. Here’s how grocers can stay ahead of the competition:
Invest in product development: Don’t just replicate national brands. Develop unique private label products that cater to specific customer needs or dietary preferences. Here are some examples:
Focus on transparency: Consumers are increasingly interested in where their food comes from and how it’s produced. Highlight the quality and sustainability practices behind your private label products. This could involve:
Embrace technology: Utilize data analytics to understand your customer base and tailor your private label offerings accordingly. Consider offering private label subscription services or online ordering options for added convenience. Here are some ways to leverage technology:
By understanding these generational differences and implementing strategic marketing tactics, grocers can effectively compete in the growing private label market and win over customers of all ages. However, staying ahead of the curve requires continuous innovation, responsiveness to customer trends, and a commitment to offering high-quality private label products that are not only affordable but also cater to the evolving needs and desires of today’s consumers.
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