Private label gains strength in weak economy
Store brand share varied widely from grocery aisle to grocery aisle, from a high of 40.4% in the dairy aisles department to a low of 0.9% for alcoholic beverages. According to Nielsen senior vice president for Consumer & Shopper Insights, this accurately reflects the typical pattern of store brand strength in several commodity categories like milk, eggs and sugar, as well as those with little “consumer-perceived” differentiation such as first aid or wrapping materials.
Conversely, the Nielsen study showed that in those categories with a limited showing for strong brand marketing support like beer and candy, or those with a high demonstrated level of innovation such as deodorants and detergents, store brand share remains relatively weak and undeveloped-a potential opportunity for retailers and flexible packaging suppliers alike.
While private label products were once associated with low-income families or households with many mouths to feed, the Nielsen research shows that's no longer the case. In fact, typical private label buyers today:
- Make between $30,000 and $70,000 in annual household income,
- Reside in rural and outer suburban areas,
- Have larger households with three or more members,
- Include a younger female head of household, and
- Fastest-growing segment is Families making $100,000 or more a year represent the fastest-growing segment in private label purchases.