The Changing Shape of the CPG Demand Curve

 • Private brands represent 17.5% of total shopper dollars, a sign of recovery after  maneuvering through the supply challenges that negatively impacted their on-shelf  availability in the recent pandemic years after decades of growth. 

• Growth of private brands is uneven among generational cohorts, segmented by  affluency. 

• Private Brand Loyalists tend to be older and shopping for larger households; 54% of  Private Brand Loyalists have household income <$70K. 

• Shoppers loyal to private brands are more engaged in the shopping process, spend  more time reading labels and they generally enjoy grocery shopping. But Private  Brand Loyalists lag Name Brand Loyalists in total dollars spent and trips. 

• Top growing edible private brand categories support snacking and convenience, while  a variety of store brand growth pockets are occurring across nonedible departments. 

Emerging Opportunities 

• The most successful store brand programs function similar to CPG companies,  including retailer commitment to supporting their brands beyond production with the  four P’s, including packaging, promotions, placement and pricing. 

• Store brands influence where many shoppers shop and should reflect the store’s  mission and strengths and be included in marketing and promotions. 

• Private Brand Loyalists indicate that trust in the brand is a key purchase driver. 

Retailers should leverage trust in their most popular products to encourage trial of  other store brand options.

• To watch: Limited Assortment Value Retailers have gained the attention  of 22% of shoppers who engage with these retailers to save money.