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PRIVATE LABEL FOOD AND DRINK TRENDS - US - JANUARY 2018

Published By :

Mintel

Published Date : Jan 2018

Category :

Alcoholic Beverages

No. of Pages : N/A

Sales of private label food and beverages have risen only modestly in recent years, roughly keeping pace with sales of food and beverages overall. The pace of growth, however, could pick up in coming years as retailers look to their store brands to strengthen their value propositions amid intensifying competition. For their part, food shoppers hold generally positive views of store brands and could be encouraged to purchase more.
Table of contents
OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
Private label sales and share tick up in 2017 but flat in the long run
Figure 1: Multi-outlet sales and fan chart forecast of private label food and beverages, at current prices, 2012-22
Private label purchase higher in more commoditized categories
Figure 2: Private label categories purchased, October 2017
Generally positive views of store brands, but relatively little conviction
Figure 3: Attitudes toward private label, October 2017
The opportunities
Cost is important but so are taste and freshness
Figure 4: Food shopping priorities, October 2017
Younger shoppers interested in differentiated concepts
Figure 5: Private label concepts, by age, October 2017
Opportunities for growth lie beyond price comparisons
Figure 6: Shopping behaviors, by food shopping priority groups, October 2017
What it means
THE MARKET WHAT YOU NEED TO KNOW
Private label sales and share tick up in 2017 but flat in the long run
Food accounts for bulk of private label food and beverage sales
MARKET SIZE AND FORECAST
Private label sales and share tick up in 2017 but flat in the long run
Figure 7: Private label share of multi-outlet food and beverages sales, 2012-17
Figure 8: Multi-outlet sales and fan chart forecast of private label food and beverages, at current prices, 2012-22
Figure 9: Multi-outlet sales and forecast of private label food and beverages, at current prices, 2012-22
MARKET BREAKDOWN
Food accounts for bulk of private label food and beverage sales
Figure 10: Multi-outlet share of private label food and beverages, by segment, 2017
Figure 11: Private label share of total multi-outlet food and beverage sales, by segment, 2012-17
Figure 12: Total US sales of private label food and beverages, by segment, at current prices, 2012-17
Private label in other channels outpaces supermarket store brands
Figure 13: Multi-outlet retail sales of private label food and beverages, by channel, at current prices, 2015 and 2017
Figure 14: Private label share of food and beverage sales, by channel, 2012-17
MARKET PERSPECTIVE
Intensified competition from new private-label-centric sellers
Amazon/Whole Foods
Lidl/Aldi
Store brands face some of the same pressures as major national brands
MARKET FACTORS
Private label share stalls amid rising consumer confidence and stable prices
Figure 15: Consumer Sentiment Index, January 2007-December 2017
Childless households continue to rise
Figure 16: Households, by presence of related children, 2006-16
A diverse population creates diverse shopping needs
Figure 17: Population by race and Hispanic origin, 2012-22
KEY PLAYERS WHAT YOU NEED TO KNOW
Growing categories provide platform for private label gains
Private label share shrinks in declining categories
Reimagining the shopping experience as simpler, more streamlined
WHATS WORKING?
Single-serve coffee
Fresh cut salad
Bottled water
H-E-B celebrates Texas
WHATS STRUGGLING?
Ready-to-eat cereal
Private label carbonated beverages
WHATS NEXT?
Reimagining the shopping experience as simpler, more streamlined
Meal kits continue to grow at retail
THE CONSUMER WHAT YOU NEED TO KNOW
Private label purchase higher in more commoditized categories
Supermarkets, mass merchants most common channels for store brands
Younger shoppers interested in differentiated concepts
Generally positive views of store brands, but relatively little conviction
PRIVATE LABEL PURCHASE
Private label purchase higher in more commoditized categories
Figure 18: Private label categories purchased, October 2017
Younger shoppers more likely to rely on store brands
Figure 19: Private label categories purchased All or most of the time, by age, October 2017
Private label purchase highest at lower income levels
Figure 20: Private label categories purchased All or most of the time, by household income, October 2017
For Hispanic shoppers, opportunity to make store brands part of the experience
Figure 21: Private label categories purchased All or most of the time, by race/Hispanic origin, October 2017
RETAILERS FOR PRIVATE LABEL PURCHASES
Supermarkets, mass merchants most common channels for store brands
Figure 22: Retailers for private label purchases, October 2017
Diversity of needs leads younger shoppers to a wider array of stores
Figure 23: Retailers for private label purchases, by age, October 2017
INTEREST IN PRIVATE LABEL CONCEPTS
National brand equivalency a starting point for store brands
Figure 24: Private label concepts, October 2017
Younger shoppers interested in differentiated concepts
Figure 25: Private label concepts, by age, October 2017
FOOD SHOPPING PRIORITIES
Cost is important but so are taste and freshness
Figure 26: Food shopping priorities, October 2017
Younger shoppers more likely to prioritize price
Figure 27: Food shopping priorities Top priority, by age, October 2017
SHOPPING BEHAVIORS
Price comparisons remain a foundation, but opportunities for growth lie beyond
Figure 28: Shopping behaviors, by food shopping priority groups, October 2017
ATTITUDES TOWARD PRIVATE LABEL
Generally positive views of store brands, but relatively little conviction
Figure 29: Attitudes toward private label, October 2017
Reinforcement loop: heaviest users more likely to hold positive views
Figure 30: Attitudes toward private label, by repertoire of private label categories purchased, October 2017
In their words: conditional approval
APPENDIX DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Consumer qualitative research
Abbreviations and terms
Abbreviations
Terms
APPENDIX THE MARKET
Figure 31: Total US sales and forecast of private label food and beverages, at inflation-adjusted prices, 2012-22
Figure 32: Total US sales and forecast of private label food, current prices, 2012-22
Figure 33: Total US sales and forecast of private label food, inflation-adjusted prices, 2012-22
Figure 34: Total US sales and forecast of private label beverages, current prices, 2012-22
Figure 35: Total US sales and forecast of private label beverages, inflation-adjusted prices, 2012-22

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