Mar 1, 2023

In Attest's latest survey, only 9% of consumers who switched to private brands said they wouldn't keep buying them, preferring branded grocery items. Image A new report from consumer research platform Attest furthers the evidence that private brands have staying power, with more than seven in 10 consumers saying they have acquired a taste for private label brands and have no intention of reverting to their branded competitors. Attest surveyed 2,000 U.S. consumers in its US Food & Beverage Trends Report, and found that more than 58% of Americans say they are “very likely” to purchase these more affordable private brands, with a further 27% being “somewhat likely.” Only 4% of those surveyed said they were unlikely to buy private brands. Those who have switched to private brands are intending to continue purchasing them, according to Attest’s survey. A large majority, 73%, said they intend to stick with private label products. Only 9% said they wouldn’t stick with the private brands they tried. “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.” Price, unsurprisingly, has been the largest reason for shoppers’ switch to private label, with 89% of Americans admitting to bargain hunting when grocery shopping at the moment. To find the best products, 41% of those surveyed visit multiple supermarkets in-person to find the best deal, while 33% check a variety of stores online instead. Low prices were the most important factor in choosing a grocery store to those surveyed, with cheaper pricing being ranked four-times more effective than special offers and promotions, which ranked second. Out of six promotion types, discounting the price of a product is what shoppers want the most, closely followed by ‘buy one get one free’ deals. Giving extra loyalty points is deemed the least attractive offer when it comes to swaying consumers on a purchase. “The big-name brands need to give consumers new, compelling reasons not to switch to their private label counterpart, or in some cases motivate shoppers to come back to big brands,” said King. “A sizable number of consumers - 41% - are choosing to make trips to multiple supermarkets in person to hunt for the best price. This fragmentation of shopping in pursuit of value, and at the expense of shoppers’ own time, is another new and emerging behavior. This puts grocery chains under serious pressure to either offer the best deals that beat other retailers and attract consumers, or to extend their own-label product lines to offer ever-increasing appeal to inflation-weary consumers.” The full report from Attest can be found here .