The recently released 2023 Private Brand Intelligence Report, based on a survey conducted by Daymon, an Advantage Solutions company, indicates that 92% of consumers trust private brands as much as or more than national brands. Further, 83% of consumers view private brands as a better value for their money than national brands.
“Increasing levels of trust, quality and value are prompting consumers to flock to private brands in record fashion,” says Jim Griffin, president of Daymon North America. “It’s a huge opportunity for suppliers and retailers to invest in innovation and leverage the shifting consumer perceptions of and desire for private brands.”
The rising consumer affinity for private brands is prompting development in three innovation pillars that are shaping product and retail innovation across both food and non-food categories.
- Innovation Pillar 1: Purchasing with Purpose. Consumers are leading the charge making intentional purchasing decisions, seeking items with positive health, environmental, social and community impact. According to the report, 83% of consumers are interested in a healthier lifestyle, leading 70% of consumers to exert more effort into selecting nutrient-dense and healthier foods than they did a year ago. Additionally, nearly one-third of shoppers say they are looking for retailers to help guide them to make healthier decisions and are interested in retailers providing more free samples to help them try new items. Beyond plant-forward options, consumer interest in total sustainability also is driving purposeful purchasing, with 83% of consumers interested in seeing more non-food, sustainable offerings.
- Innovation Pillar 2: Fit for Functionality. Consumers are expecting brands and products to do more for them than ever before — with multifunctional products and services that simplify their diverse needs and provide better product solutions for health concerns. Ninety-four percent of consumers view private brands as just as good or better than national brands in offering products that fit their lifestyles. On top of that, one in four shoppers, excluding Boomers, are interested in dietary-specific private brands such as gluten-free, keto and plant-based; and 61% of shoppers are looking for private brands to provide more affordable, convenient-to-use-or-consume products, while 35% of consumers are asking for products with functional ingredients.
- Innovation Pillar 3: Uniquely for Me. Now more than ever, shoppers are looking for brands to deliver immersive and share-worthy product experiences that innovate around uniqueness and personalization, dynamic pairings and sensory levers that elevate flavor, scent, novelty and aesthetics to drive simple joy and engagement. According to the report, 78% of consumers stated they seek out new food and beverage flavors and trends, with 30% of shoppers expressing that a bold and unique flavor makes them more likely to try a new product. More than three out of four shoppers have a positive perception of private brands that launch new flavors and limited-time offerings, with these respondents saying new flavors are exciting, contribute to their enjoyment of the in-store experience — and keep them coming back.
To learn more insights from the 2023 Private Brand Intelligence Report, download the report here.