The trend: The gap between national brands and private labels is fading fast. Nearly half (47%) of US shoppers prefer to buy store brands, compared with 37% who prefer national brands, per a report by Kroger’s consumer insights platform, 84.51°.
Digging deeper: Shoppers are most likely to switch to private labels for frozen, shelf-stable, household cleaning, and over-the-counter healthcare products.
The big takeaway: Consumers’ newfound affinity for private labels should be deeply worrying for consumer packaged goods (CPG) companies like Unilever and Nestlé, which are using price hikes to paper over falling unit sales.
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