The Public Loves Private Label
Private label food and beverage items have become staples in U.S. households, according to a new report from market research firm NPD Group.
The report, Private Label Perceptions, Usage Patterns & Intentions [pdf summary], indicates that in 2008, 24% of all food and beverages served in U.S. homes were store brands, up from 18% in 1999. Furthermore, 97% of all U.S. households consumed private label foods and beverages on a regular basis last year.
The report also demonstrates that U.S. consumers are increasingly using private label foods for their main meals. More than half of respondents, 54%, said they use private label foods for an end dish, while 26% use private label foods for ingredients. Another 18% use private label foods for ingredients, and 2% use them to aid cooking.
In recent months, an increasing number of retailers have been capitalizing on the growing popularity of private label foods and private label end dishes. Safeway is selling its proprietary Eating Right brand of healthy food products through other retailers, while Wal-Mart recently announced it will add 80 items to its Great Value private label grocery/consumer product brand, and 7-Eleven is scheduled to add 100 products to its 7-Select line of consumer and grocery goods.
For consumers seeking to create end dishes made from private label foods, small-format grocery chain Fresh & Easy recently launched a private label brand of prepared meals, and Supervalu now offers “Simply Good Meals,” branded destinations within its stores designed to provide consumers with ingredients and recipes for quick, affordable family meals. In addition, Cumberland Farms and Giant Food recently launched convenience store concepts featuring private label prepared meals.
Private Label Perceptions, Usage Patterns & Intentions is based on data from three NPD sources: the National Eating Trends (NET) U.S. database, the Consumer Expectations Monitor, and a custom survey on private label foods and beverages. NET’s continuous data collection for this report ended August 2008; data was compiled from an annual sample of 2,000 households representing approximately 5,000 individuals. Panelists reported on their households’ consumption for all meals and snacks consumed both at home and away from home for 14 days. NPD fielded the Consumer Expectations Monitor survey every other month from March 2008 to January 2009. Approximately 750 adults reported on their levels of anxiety with regard to spending to feed themselves and their families and making ends meet. The private label custom survey was fielded in January 2009 to a nationally-representative sample of NPD’s online consumer panel (ages 18+). Participants reported on their attitudes about and perceptions of private label food and beverage brands.