New FMI Research: Shoppers Cite Increased Motivation and Preference for Private Brands

ARLINGTON, VA – Today, FMI—The Food Industry Association releases the 2024 Power of Private Brands: What’s Ahead for Shoppers and Private Brands report, which demonstrates a growing preference for these products in food retail. The analysis, supported by Circana, reveals how consumers view private brands positively, not only for their value but also for offering benefits such as meeting meal solutions needs and health benefits.

"Our research suggests that private brands are no longer just about offering a cost-effective alternative; they are about delivering quality, creating new experiences, and highlighting unique values that resonate deeply with today's consumers," said Steve Markenson, vice president of research & insights for FMI. “In turn, retailers have recognized their portfolio serves as a strategic differentiator and an extension of their brand narrative to shoppers.”

Perceptions of Private Brands

FMI’s recent shopper surveys reveal an increasingly positive sentiment toward store brands, with terms like "good," "great," "quality," and "better" frequently used to describe them. Consumers say they are also open to trying more private brand items with 55% of shoppers reporting they increased their purchase of these products over the past year, compared to only 28% who have bought more manufacturer brands.

Purchasing Patterns and Motivations

Consumers are increasingly driven to buy private brands primarily due to value and price (71%), with quality and taste also rising to the top as significant factors for selection. Specific drivers such as meeting meal solution needs, appealing packaging, and aligning with health needs are also cited among shoppers. Notably, taste and high quality slightly surpass low price as very important factors in choosing specific store brand products, indicating that private brands can further leverage these attributes to enhance shopper loyalty.

Attributes for Store Selection

The importance of private brands in determining where to shop has grown significantly, influencing more than half of shoppers' store choices in 2023 and 2024, compared to about a third in 2016. Additionally, 55% of shoppers state that their primary store's brand is very or extremely important in their decision to shop there, underscoring the growing influence of private brands on consumer behavior.

Doug Baker, vice president of industry relations at FMI, continued, "Private brand owners have the opportunity to further elevate their perception by increasing investments in marketing and treating the portfolio as an asset to support print and digital strategies."

For Media: 

Media may access a gratis copy of the report. Please email media@fmi.org for a copy.