Private-Label Brands Changing Consumer Shopping Habits

January 21, 2011

Up to 44% of consumers believe that private-label products are of better quality today compared to five years ago, according to market research firm Mintel International.

Up to 44% of consumers believe that private-label products are of better quality today compared to five years ago, according to market research firm Mintel International.

“The private-label market has enjoyed sales growth in recent years that isn’t likely to decrease in the near future,” it says. “Private-label companies continue to introduce better-for-you products and more attractive packaging, all while being easier on consumers’ pockets.”

Only 19% of consumers believe it’s worth paying more for name-brand products, says Mintel. For instance, when it comes to dairy products, nearly 62% of consumers believe there’s no quality difference between private-label and name brands. “With the exceptions of drinks and personal care products, most consumers believe that private-label options are of equal quality to nationally branded products,” says Fiona O’Donnell, a senior analyst at Mintel.

“Private-label brands are overcoming the stigma once associated with ‘generic’ products,” says O’Donnell. “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 brand staples that are of equal quality.”