Have you noticed something different in your favourite grocery stores lately?
More shoppers than ever are flocking to private-label products, and it's a thrilling transformation in the grocery landscape. This trend is not just a fleeting moment; it's becoming a staple of how we shop—offering both fantastic savings and top-notch quality.
Gone are the days when your mom's no-name store brands were seen as second best.
Today, savvy shoppers are discovering that private-label brands from grocers like Loblaw and Sobeys deliver exceptional quality at unbeatable prices. People are realizing that choosing private-label products means they can save big without skimping on taste or value.
A recent report by CoBank highlights an exciting surge in demand for private-label items, particularly as inflation nudges prices up. This also means that retailers are stepping up their game, investing in a broader selection of store-branded products to meet the growing appetite for affordable quality. This shift is changing how consumers view store brands—many are eager to give them a try, and they're loving what they find.
Even the look and design of private label marketing and packaging is evolving and creating their own spotlight.
Private-label brands have traditionally been associated with lackluster designs for their white-label products. This is often due to limited financial investment in marketing and less guidance from consumer packaged goods experts.
However, this trend is shifting as an increasing number of retailers introduce private-label offerings and expand their presence in this space.
Today, we find ourselves in a market that is highly receptive to private brands we all know very well, like: Target's Good & Gather, Loblaw's PC Black Label, Longo's Curato, Whole Foods Market 365 Everyday, and Rexall's Be.better.
Consumers appear to be embracing private-label products as smart choices that significantly lighten their grocery bills. With comparable quality and lower prices, it's no wonder that more people are making the switch!
Private Label Manufacturers Association attracts thousands of people at PLMA's 2024 Private Label Trade Show amid cheerful developments on several fronts:
In the first nine months of the year, store brand dollar sales grew 2.9%, outpacing national brands, which added 1%. In units, store brands rose 2.3%, brands fell 0.8%. Media attention has been widespread with coverage from Bloomberg News, CNBC, The Wall Street Journal, others. Record numbers abound: 1,800 exhibitors, 3,000 booths, 60 countries.
The rise in this area of the industry is something we've witnessed in all aspects of business here at SNI. Store brands have established themselves as dynamic omnichannel players, making a strong presence across nearly all product categories. In 2023, of the 179 food categories tracked by Circana, store brand sales were reported in 175—an impressive 98%. Similarly, in the 138 non-food categories, sales occurred in 132, or 96%.
PLMA brings together people that know consumer trial plays a crucial role in the success of store brands. Once shoppers try them, many of stick with these brands instead of returning to national options. Store brands have garnered extensive and positive media coverage, with analysts viewing them as valuable corporate assets.
As retailers invest in better branding and marketing strategies, the appeal of private-label products is only set to soar. This means more choices, exciting promotions, and fantastic discounts for shoppers.
The rise of private-label brands in Canada isn't just a trend—it's a revolutionary change in how we approach grocery shopping, shining a spotlight on the importance of value and savings in today's world.
The future of grocery shopping is bright, and private-label products are leading the way!
PLMA in Chicago is just a few weeks away!
Book an appointment to meet with Stuart and Christel in Chicago to talk about private label strategy and how our solutions can help!
