While a new survey from Market Force Information finds that private label groceries overall are growing in popularity, dairy still dominates the purchases.
In the survey of more than 6,200 consumers, 60 percent indicated they buy private label dairy most of the time or always, and another 35 percent said they sometimes purchase it. A wide majority (78 percent) indicated their primary grocer offered private label dairy products, 8 percent said their store did not and 14 percent didn't know.
The results were similar to a survey from 2013. Of the 95 percent who bought private label dairy at least somewhat regularly in the 2013 survey, 78 percent said it is because of the price and 48 percent pointed to the good value.
By comparison, private label gains were much lower in other categories:
Cereal: Only 27 percent of respondents said they purchase private label cereal most of the time or always, with 42 percent sometimes buying it and 31 percent never making a purchase. Nearly three-quarters (76 percent) recognized that their local grocer carried private label cereal.
Snacks: Twenty-seven percent report buying private label snacks most of the time or always, while 53 percent sometimes do and 19 percent never do. Sixty-eight percent recognized their primary grocer carries a private label snack brand.
Cleaning products: Twenty-six percent said they opt for private label cleaning products most of the time or always, with 43 percent sometimes doing it and 31 percent never buying. In this category, private label awareness was particularly low, as 39 percent of respondents said they didn't know if their grocer sells its own cleaning products.
Overall, the study revealed that 98 percent of shoppers purchase private label food items or cleaning products at least some of the time, up from 96 percent in 2013.
"While private label purchases in general are trending upwards, there is significant opportunity to capture additional wallet share, particularly in the categories with longer shelf-lives such as cleaning products and cereal," said Janet Eden-Harris, chief marketing officer and SVP of strategy for Market Force. "Shelf promotion is key, as shoppers often report trying a new brand because they noticed it on the shelf."
Which of the three under-penetrated areas explored in the Market Force Information research has the greatest potential for gains in over the next five years?