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BizReport : Research archives : February 01, 2011

Mintel: National brands, private labels equaling out

News from the recession: when consumers were pinching pennies and buying off-brands, they realized the difference between the two was not that large. That change has continued even though the economy has begun to even out. According to a recent report from intelligence hub Mintel, private labels are now on par with national brands.

by Kristina Knight

mintel.jpgThe report found that 44% of consumers believe store brands are of 'better quality' now than five years ago and that 39% of consumers will recommend store brands to friends. Just over one-third (34%) believe they 'aren't giving up anything' by purchasing store brands, while less than 20% believe buying the bigger brand names is worth the price increase.

"Private label brands are overcoming the stigma once associated with 'generic' products," said Fiona O'Donnell, senior analyst with Mintel. "The lack of perceived difference can be attributed, in part, to the fact that many retailers have introduced premium private labels products in recent years that rival their branded counterparts in flavor and nutritional value, as well as in packaging design and shelf placement...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."

Other interesting takeaways from the report include:

• 60% of shoppers 'usually' purchase private label bread/baked goods
• 58% of shoppers 'usually' purchase store brand cheese
• 62% of shoppers report 'no difference' in the quality of store brands
• 56% believe private label household/cleaning products are of equal quality

Tags: branded products, consumer spending, CPG advertising, CPG packaging, Mintel, private label products

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