The mainstream media continues to attribute the current growth Private Brand to the recession. This excerpt from an article published this past week in Inc. magazine is no exception.
Thrifty Consumers Turn to Store Brands
The recession offers a boost to private-label manufacturers of store brands.
More consumers are choosing store-brand goods over pricey, name-brand products—another consequence of the recession—which is good news for the manufacturers who produce them, according to a recent report by Chicago-based market research firm Information Resources (IRI).
Store brands’ market share has risen to 17.5 percent over the past two years after hovering around 16 percent for over a decade. “This is significant because you’re looking at a global, $300 billion-consumer packaged goods industry,” says Brent Baarda, director of consulting and innovation at IRI.
But while the recession is driving consumers to sample private label offerings, they’re finding they like what they taste. Of 1,500 surveyed consumers, IRI found nearly 80 percent had positive attitudes toward store brands, versus 73 percent a year ago. Four out of five consumers surveyed believe store brands are just as high-quality as a brand name. “The spike will be sustainable, because consumers are having positive experiences,” Baarda says.