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New IRI Report Explores Private Brand Recovery Amid Inflation and Economic Uncertainty

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CHICAGO–()–IR extension®that recently united with The NPD Group to create a leading global provider of technology, analytics and data, today released a new report exploring trends in private label (also known as store brand or private label) products, which have fallen short of expected growth due to economic uncertainties in 2022 . The report, “Private Labels: See Who’s Buying Now” provides an update on the store branding landscape and identifies opportunities for the retailer to increase demand for its own brand and private label offerings.

“While consumers have historically navigated to hold on to branded products to save money during tough economic times, this year we’re seeing that only modest gains have been made in private label’s share of the consumer portfolio,” said Mary Ellen Lynch , director, Center Store Solutions, IR. “Retailers need to be extremely focused on understanding their shopper needs and emerging opportunities to drive growth amid modest private label trends across the entire retail landscape.”

Key insights from the report include:

Who buys private label products?

  • Across the store, 99.7% of US households purchase store-brand products, whether intentionally or not.

  • Store brand loyalists tend to be older, have larger families, are less urbane, and are homeowners.

  • 54% of store brand loyalists have a median household income of less than $70,000.

  • SNAP recipients represent a significant segment of private label shoppers, as 36% of SNAP shoppers will switch to store brands more often.

What private label products do consumers buy?

  • During the recent inflationary bout, store brands increased their share of all-outlet dollar sales to 17.5%.

  • Store-brand food and beverage products are strengthening the dollar share, while the non-food dollar share remains stable.

Where are the consumers buying private label products?

  • Consumers are increasingly saying that store brands influence where they choose to shop; 35% of consumers often or always choose a retailer based on the store’s selection of branded products, up 2% from 2021.

  • Both club and mass channels are earning more than their fair share of consumer spending on non-edible store brand products.

Opportunity for private label growth

  • Retailers can attract and captivate younger shoppers by offering more convenience options, healthy attributes and adventurous taste in private label products.

  • Retailers should support store brands similar to naming brands with a commitment to brand development, manufacturing, packaging, promotions, positioning and pricing.

  • Retailers can leverage trust in their most popular products to encourage trying other store-brand options.

IRI’s Mary Ellen Lynch will cover the new private label report in a webinar tomorrow, November 30, at 1pm CT. The free webinar will explore private label trends by category and suggest strategies for building private label programs, both now and in the future. To register today, visit here.

About the IRI

IRI unifies technology, analytics and data to reinvent the way people and businesses make decisions, act and optimize performance. With the largest repository of buying, media, social, causal and loyalty data, all integrated into an on-demand cloud-based technology platform, IRI helps guide its more than 5,000 customers worldwide in their quest to capture share market share, connect with consumers, partner with key constituents, and deliver market-leading growth. For more information visit www.iriworldwide.com.

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Written by Natalia Chi

Chicago Popular; Chicago breaking news, weather and live video. Covering local politics, health, traffic and sports for Chicago, the suburbs and northwest Indiana.

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