Customer In Supermarket. Black Man Doing Grocery Shopping Standing With Cart Choosing Food Product Indoors. African American Guy Buying Groceries In Food Store. Selective Focus, Copy Space

As inflation takes its toll on grocery budgets, new research from Attest reveals that many consumers have solidified their preference for private-label brands. Attest surveyed 2,000 U.S. consumers, finding that more than half (58%) are “very likely” to buy from private-label brands as opposed to more expensive big-name brands, while 27% are “somewhat likely.” Only 4% are “unlikely” to buy private-label. 

Taking it a step further, 74% would make the switch from big-name brands permanent, noting they would “definitely” (34%) or “probably” (40%) continue purchasing private-label if price was no longer a concern. Only 9% wouldn’t keep buying private-label products. 

When choosing where to shop these days, most American consumers are chasing value. The majority (89%) are likely to go bargain hunting when grocery shopping, including looking at advertisements (58%), visiting different supermarkets (42%), and checking online (34%) to find out where the best deals are. Most consumers (63%) say low prices are most likely to motivate them to choose a specific supermarket, while high prices or a lack of deals have driven consumers away from certain retailers completely.

Product discounts are most likely to incentivize food and beverage purchases compared to other offers like buy-one-get-one deals, pre-inflation price freezes, and extra loyalty points. But those discounts don’t have to be significant — nearly 30% of consumers would bite on a minimum discount of 20%, 22% would buy a product with a 30% discount, and 19% would be persuaded by a discount of 10% or less.

In their search for value, consumers are becoming long-term fans of private-label. But some are unwilling to make the switch, most likely because they’re still able to afford trusted household brands (29%). Some also report that private-label products don’t taste as good (28%) or have lower quality ingredients (25%). 

But, overall, private-label brands are thriving under current economic conditions. “American shoppers have changed in behavior and have acquired a real taste for private-label brands due to inflation’s impact on the cost of grocery and household products,” said Jeremy King, CEO and founder of Attest. “This poses a significant challenge to well-known brands that can’t compete on price and who may end up the losers here as these shifts in shopping habits may be permanent for several important sub-segments.”

See Attest’s full 2023 U.S. Food & Beverage Trends report for more insights. 

Supplier Catalog - Software - Deacom / ECI Software