91% of US Consumers Will Stick with Private Labels Post-Recession

June 15, 2009

This article is included in these additional categories:

Brand Metrics | CPG & FMCG | Retail & E-Commerce

A new study on consumer shopping habits provides further evidence that private label brands are becoming increasingly popular, and their popularity will remain even after the economy turns around, writes Retailer Daily.

Store Brands and the Recession,” an ongoing study conducted by the Private Label Manufacturers Association (PLMA) and GfK Custom Research North America, indicates that 91% of respondents? will keep buying store brand products after the recession ends, while only 8% saythey will stop buying these products once the economy turns around.

In addition, 90% of respondents said private label products are just as good as, or better than, national brand products and 90% purchase them either frequently or occasionally, the study found:


While the study indicates private label shopping habits will outlast the current recession, it also reveals that as the recession continues, consumers continue hardening their private label buying habits. More than half of respondents (54%) say the recession is an important factor in their decision-making, and 32% say it is very important.

The poll also found that 35% of respondents are trying store brand products in categories where they had previously only purchased national brand items, and slightly more than 30% said they are now buying more store brand products than they were a year ago.

These results echo other recent research findings. A report on private label food and beverage trends in US? households by NPD Group found in 2008, 24% of all food and beverages served in US? homes were store brands, up from 18% in 1999. Additionally, 97% of all US? households consumed private label foods and beverages on a regular basis last year.

MediaBuyerPlanner also reported that CPG company Procter & Gamble reported a 5% dip in global sales volume for its Q3 2009 (ended March 30, 2009), and analysts predict earnings per share may drop 5% in Q1 2010 (starting July 1, 2009), with private label goods the most likely beneficiary.

About the research: The report is based on a GfK’s nationwide poll of nearly 800 primary household grocery shoppers.

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