room for growth
Over the past three years, one area of grocery that has shown great growth potential for private label is meal components. Data from the IRI Omni Scan panel for all outlets year-to-date ending July 12 shows that items such as frozen raw shrimp, spices/seasonings, natural cheese slices, muffins, chilled and frozen uncooked meats, frozen appetizers and chilled flavored spreads have all increased in household penetration since before the pandemic.
Meal solutions and components are likely to remain a growth area for private label brands if consumers continue to eat more at home, either to save money or to accommodate the work-to-work lifestyle, according to Moberly. residence.
The IMF study confirms what some of the IRI data shows, as consumers who qualify as “frequent private label buyers” report that they tend to buy private label in the following categories: products fresh baked goods (35%), non-prescription drugs (26%), milk (25%), fresh prepared meals (24%) and deli meats (23%). The categories in which they source top national brands include packaged alcoholic beverages, pet food, plant-based meat substitutes, coffee and tea, and HBC products.
PLMA, for its part, has recognized the growth potential of products with healthier attributes and has focused on this at its recent shows. These attributes include vegan, clean, plant-based, free, natural, organic, keto, high-protein, functional, probiotic, prebiotic, gluten-free, heart-healthy, sugar-free, and low-fat.
Additionally, the trade association lists sustainability, fresh foods, and ethnic/international foods as other growth areas for the private label.
Another health and wellness category that is attracting private label interest is fresh produce. GoldenSun Insights, a Batavia, Ohio-based strategy-centric firm focused on the fresh produce supply chain, supports clients with strategy, business development, and marketing, including private label. President and co-owner Randy Riley notes that one way to add value is to create more sustainable packaging. Retailers also need to be as transparent as possible, whether through their messaging to consumers or offering social certification programs.
“The story behind the brands is going to be the most important factor for the future of private labels,” he predicts. “Consumers want to know the story behind who grows their food and how it’s grown, and a private label can get in the way of that a bit.”
Riley also notes that organic versions of the private label are growing in the produce category.
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