FMI’s Power of Private Brands 2024 Identifies Increased Industry Investment

New survey finds more than 90% of food retailers and manufacturers plan to increase private brand investments in the next two years

Arlington, VA – FMI – The Food Industry Association, today released The Power of Private Brands 2024: Industry Strategies to Sustain Momentum report which surveyed food industry executives about the importance of private brands to their business and the strategies they plan to pursue to further brand development and grow sales in private brand products.

“The private brands industry is thriving, and it’s clear why: its value is often unmatched. The sector has become a critical area of growth and investment for both retailers and manufacturers,” said FMI Vice President of Industry Relations Doug Baker. “To meet increasing demand, executives are investing substantially in developing new products and appealing to a broader customer demographic — especially younger shoppers. They are also strengthening their supplier and trade partnerships to drive innovation and sustain the ongoing success of private brands in food retail.”

Private Brand Investment Set to Increase

Eighty-four percent of food retailers and manufacturers surveyed say that private brands are extremely important to their organizations. That, combined with private brands growing popularity among shoppers, has resulted in 93% saying they plan to moderately or significantly increase private brand investments in the next two years, up from 82% a year ago.

Key areas of investment include adding capacity and value through innovation and new product development in growth opportunities like premium, best value, health and well-being, products with simple/clean ingredients, and frozen and fresh foods.

Private Brands Deliver on Value and Price

Per FMI's consumer research, price (71%) and good value (72%) are top reasons cited by shoppers for buying more private brand items, and 80% of food industry respondents believe that private brands continue to perform well in terms of driving growth of customer purchases via delivering value.

However, more than half (54%) of retailers are focused on emphasizing the value of private brands beyond price, focusing on other areas that motivate consumers’ private brand purchases, including quality, taste, and meeting meal solution needs.

Younger Consumers Key to Private Brand Growth

Eighty-one percent of food industry executives said that appealing to younger consumers is the top area of importance, along with emphasizing value/price, to driving private brand growth.

An increased focus on digital marketing was the top strategy cited by both food retailers (69%) and manufacturers (52%) to attract younger consumers from digital-native generations. Additional strategies cited by retailers and manufacturers were increased use of samples (33%), leveraging shopper insights (30%), boosting convenience (25%) and enhancing ecommerce experiences (20%) through improved search functionality, suggestive selling, and more compelling online product images.

The Power of Private Brands 2024: Industry Strategies to Sustain Momentum, is based on an exclusive survey of 42 food industry executives. Find more at www.FMI.org/PrivateBrands.

For Media:

Members of the media can contact media@fmi.org for a gratis copy of The Power of Private Brands 2024: Industry Strategies to Sustain Momentum report.