By 2027, the share of American private brands will increase by another 8%!

Expert Opinions

1

In an era of ubiquitous national brands, the only differentiator is who's selling it, and private label is one of the only ways to differentiate today. So, yes, private label has exploded in food retail, and other categories are quickly following suit.

2

Private label sales will continue to expand, especially in the food category. Private label products on store shelves look the same as national brand products in packaging, but it’s easy to see that it might be a store’s private label. Plus, consumers are trying to find higher quality but lower-priced products through private label.

More and more consumers, especially millennials, are more willing to make purchasing decisions based on ingredients and price. Brands are unimportant to them; the core is that the product is healthy, interesting, and low-priced. This is why more and more retailers are willing to develop private labels. I also believe that unique private labels can differentiate a store from competitors, and this trend will continue to grow.

3

Dick Seesel

Founder, Retailing In Focus LLC

I expect private label to continue its march, whether at lower or mid-range prices, aiming to take share from national brands. This has been a differentiation trend for department stores for years, also to avoid direct price competition, although whether this shift drives overall sales growth is debatable. It’s not just the Amazon/Whole Foods combination driving private label sales (or Aldi’s growth).

4

Art Suriano

CEO, The TSi Company

Private label brands have a great opportunity for growth because the food industry has the opportunity to create customer-appealing products from several categories. Nail a category and do it well, and private label can be hugely successful. Today, among our customers, there are those interested in healthy foods, those who like gourmet foods, and those who like to eat. Some are price-conscious, while others are more interested in quality. Private label can cater to the individualized needs of each audience and customer.

In private label development, those retailers who implement a strategy that blends with national brands are more likely to succeed.

5

Seth Nagel

Senior Marketing Manager RW3

6

Outside the US, private label has been a strong growth story for decades. Despite the slowdown in US economic growth, private label will maintain an upward trajectory for the foreseeable future due to the reasons mentioned in the article. It’s not just millennials; older baby boomers are also looking for ‘value-driven’ products, so the private label food wave will grow over time.

Retailers need to heavily promote private label; at a minimum, put it in front of shoppers where it will be noticed.

7

Neil Saunders

Managing Director, GlobalData

8

Dan Raftery

General Manager, Raftery Resource Network Inc.

9

Minzhi Huang

Marketing Director, Wiser Solutions, Inc.

Today, brand loyalty is not what it used to be. For increasingly price-sensitive customers, quality and price are often much more important than the brand behind the product . Think of Trader Joe’s; many of their products are private label (and often come with healthy humor!), which means they can be more competitive on price. If a food retailer can produce high-quality, unique private label products at competitive prices, then it is definitely worth a try.