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Private Labels Grow Faster than National Brands

11/20/2018

According to Supermarket News the IRI Private Label 2018 report confirmed that private-brand sales climbed 5.8 percent in 2018 compared with 1.5 percent for national brands and 2.1 percent for the overall consumer-packaged goods segment.  Unit sales rose 3.8 percent for private label in 2017-2018 while national brands fell 0.2 percent.  The total consumer packaged goods sector gained 0.5 percent year-over-year according to the IRI study.

 

Within the consumer packaged segment, groceries increased 1.2 percent in sales value but declined 1.7 percent in unit volume.  National brands within this sub-segment were higher by 1.5 percent in value but declined 0.8 percent in unit volume.

 

Club retailers posted increases of 5.9 percent in dollars per customer, 2.5 percent in spending per visit and 3.3 percent in trips per buyer.

 

Within the grocery product category, frozen foods posted a 7.2 percent increase in dollar sales and 6.3 percent in unit volume followed by refrigerated food (7.1 percent in value and 4 percent in volume.)  IRI noted that shelf-stable egg substitutes were the fastest growing private label product in sales value.

 

In surveys of consumers, IRI determined that 83 percent of consumers purchased private-brand products to save money and 68 percent of shoppers view private label items as superior in value to national brands.  The survey also showed that 76 percent of consumers view private brands as acceptable in quality as national brands.  This is especially true of Millennials who consider both value and price.  Approximately 70 percent of consumers indicated that they plan to purchase  more private label products over the coming six months with a higher proportion among Millennials.