Consumers swap name brands for private label

In its 2022 Private Brands report​, Daymon noted a significant rise in consumers’ willingness to purchase private label products over name brands in 2022 vs. the same time last year, especially during the holiday season when grocery spending tends to skyrocket.

According to its research, just under 70% of shoppers purchased private brands last holiday season (2021) with the top two drivers being better satisfaction with private brands’ product quality and effort to save money. This year (2022), 95% of consumers surveyed said they were interested in purchasing private brands during the holiday season, citing greater value and affordability as well as improved selection and quality among retailers’ private label selection as top purchase motivators. 

Less than one-fifth (17%) of consumers surveyed this year plan to stick to using the same national brand for their holiday recipes, while 83% of shoppers either already use private brands or are willing to switch brands this holiday season.

“Private brand interest is driven by perceptions of low prices as well as high overall value,” ​noted Daymon in its report. “Nearly one in four consumers are specifically motivated to buy private brands this holiday season because the brand they normally buy raised their price – giving retailers the opportunity to capitalize on brand switching behavior to drive private brand trial and loyalty.”

Private brand interest by category

While consumers indicated a general willingness to purchase private label products across the store, 64% of consumers responded that they were interested in private-label dairy (eggs, milk, yogurt, cheese, ice cream) and 61% surveyed said they would be willing to purchase private label staple meal ingredients (pasta, baking mixes, condiments, spices, canned goods, etc.) followed by salty snacks (47%), frozen foods (43%), and shelf-stable baked goods (40%). 

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