Private Label’s Strength through the Pandemic

January 12, 2021


Food shortages and economic uncertainty helped push consumers toward private labels during the pandemic. But the quality and value of private labels will keep shoppers coming back for more.

A recent Hartman group study shows that 22% of shoppers rely more on private label products than they did pre-pandemic, and half of these (52%) say they expect to continue purchasing store brands as COVID-19 concerns subside. Retailers and private label manufacturers can continue building trust in private labels by formulating products with simple, high-quality ingredients and unique and premium attributes.

Survey results

The survey found that both price and availability were factors in the initial purchase of the private label product. But consumers are enthusiastically embracing private labels because of their quality and value.

Private store brands are winning

Stores like H-E-B, Costco, and Trader Joe’s take private-label foods to whole new heights. With their unique twists on old favorites using premium ingredients, the taste and quality of these private label products equal and sometimes exceed the brand name product.

What consumers are looking for

The products that consumers most often swapped out for private labels had simple ingredients and were minimally processed. Consumers did their research and compared labels to help with their decision to switch. Once consumers saw the quality and value in the private label product, they were more likely to try other multi-ingredient private label products.

Consumers are looking for a lower-cost, healthy product that retains the quality of the brand name product. If consumers see something they perceive as junk or low quality in an ingredient list, they quickly switched back to the brand-label product.

In the future

Consumers will strengthen their trust in private label products and continue to purchase them instead of brand name products as long as there are economic anxiety and insecurity.

Click HERE to read the full report from The Hartman Group.


Source: The Rise of Private Label During COVID-19. Hartman Group.