Shoppers Continue to Spend on Private Label Products, but Some See A Return to Name Brands

October 29, 2020

IntegerGroup Private Label Purchase Behavior Trends Oct2020Driven by the desire to save money, nearly all US shoppers say they purchase private label or store brands. And, with close to half of Americans reporting that they are spending less money this year than they have in the past, it is no surprise that 9 in 10 consumers are spending at least the same amount – if not more – on private label products than they did last year, per a report [download page] from The Integer Group.

In a survey of more than 1,200 US consumers conducted in May 2020, about 6 in 10 (58%) reported that they are spending the same amount as they did in 2019 on private label products, while almost one-third (31%) said they are spending more on private label items.

Those who are spending more consist of 12% who believe they will probably continue purchasing private labels in the future and a near-equal share (13%) who say they will probably switch back to name brands in the future. The remaining 6% believe they will spend more on private labels in the future.

Consumer perceptions factor into why they are still attracted to name brand products, and these perceptions have changed over the years, with some shifts towards name brands. For example, between 2012 and 2020, there has been a 45% point increase in the proportion of consumers who believe that name brand products are better quality than private labels. Meanwhile, the percentage of consumers who believe that name brands are more expensive than private labels has dropped by 29% points.

Broken down by age, there are private label products that some age groups are more likely to purchase than others. The youngest group of adults (ages 18-24) are more likely than older generations to buy private label products like snacks, juice and candy, while older Americans (ages 55+) appear more likely to purchase private label milk and canned vegetables. Additionally, adults ages 35 and older are more likely than shoppers younger than 35 to purchase over-the-counter medicine.

The report can be downloaded here.

About the Data: Results are based on a May 2020 survey of 1,202 US adults (ages 18+).

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