Consumer perception of private label products improving, says Mintel
Many market researchers have questioned whether private label – or store brand – products would hold onto the gains they made in market share during the recession. During previous recessions, store brands lost much of the progress they made as the economy recovered. However, market research repeatedly showed in 2010 that store brands were retaining market share, with some speculating that increased quality and innovation in the sector is changing consumer perception.
Overall, Mintel found that only 19 percent of consumers said they thought it was worth paying more for name-brand products.
Senior analyst at Mintel Fiona O’Donnell said: “Most consumers believe that private label options are of equal quality to nationally-branded products. The lack of perceived difference can be attributed, in part, to the fact that many retailers have introduced premium private label products in recent years that rival their branded counterparts in flavor and nutritional value, as well as the packaging design and shelf placement.”
For foods and beverages, drinks were the exception, O’Donnell said, with consumers still perceiving branded beverages to be of better quality than store brand alternatives.
“Private label brands are overcoming the stigma once associated with ‘generic’ products,” O’Donnell said. “Even though the recession has ended, and consumers may be in a better position financially to return to name brands, it’s likely that many will continue to buy store brand staples that are of equal quality.”
In particular, the market research organization found that 60 percent of primary grocery shoppers usually or sometimes buy private label bread, while 58 percent usually or sometimes buy store brand cheese.
