Gen Z Shoppers and the Power of Private Brands

This is the fourth installment in a new FMI blog series on Gen Z grocery shopping habits. This series will share compelling research and cover aspects ranging from shopping behaviors to attitudes about values.

By: Avery Collins, Intern, Communications and Marketing, FMI

When shopping, I find myself searching for products that meet my expectations without breaking the bank. I look for the least expensive options that offer the best value, quality and taste. This mindset is common in my generation. Other Gen Z shoppers prioritize this blend of affordability, taste and quality of their purchases.

In college, there were many times at the end of the month where I had already blown most of my budget on unnecessary or extravagant purchases. I struggled finding inexpensive meal solutions and products that offered what I was looking for. Until one day, wandering through the aisles, my attention was caught by the packaging of my store's private brand. Promising organic ingredients at a fraction of the price of the leading national brands, I was skeptical, but also curious. I decided to give it a try and to my surprise, it was delicious! It was the first time I realized I could have both quality and affordability when it came to my meals. To this day, the pasta has become a staple in my pantry and all my favorite products are from the same national private brand.

When looking at finding value in private brands, Gen Zers don't perceive value based solely on price; compared to 68% of the general population, only 51% of my generation find value in price alone.

Recently, I hosted a gathering at my house and needed snacks. I opted for my store's private label chips and salsa because I knew they would deliver with their natural ingredients and bold flavors. Unfortunately for me, there was nothing left afterwards. My friends had eaten it all!

Quality, Taste, Health and Uniqueness

We consider how brands complement the overall shopping experience — purchasing more private brands for quality (44%) and taste (39%) .

We care about health and well-being for both ourselves and others. More of us find value in private brands that avoid unhealthy items (25% vs. 20% overall) and products that are made ethically (22% vs. 15% overall).

Gen Z is reshaping the grocery landscape, favoring private brands that offer a blend of quality, taste and affordability. As our purchasing power grows, the rising influence of private brands is primed to increase, reflecting a broader cultural shift towards this holistic notion of value.

The Power of Private Brands 2024    Research Reports