What: The improvement of the private labels offering in the US has encouraged customers to drop name-brand CPGs.

Why it is important:  A similar upward trend has taken place within most department stores having food private labels. It is significantly contributing to the recognition of the retailer’s name.

While during the pandemic, famous name-brand CPGs were winning market shares, the post-pandemic supply chain issues as well as the poor growing season paved the way for private labels as customers started to hunt for bargain. Inflation and higher prices finished to encourage customers into buying private labels.

According to Retail Dive, in the US, 73% of current private labels shoppers plan to keep on buying them even as the economy improves, now that most American retailers have improved both the quality and selection of their private label offerings. In reaction, name-brand CPGs have decided to stop raising prices to spur demand.

75% of US grocery shoppers plan to stick to private labels