Nielsen – Private label perception among consumers mostly positive

New York, N.Y. - Perceptions about private label are overwhelmingly favorable. Almost three-quarters of global respondents (71%) say store-brand quality has improved over time, according to a new study by Nielsen.

Price is a primary driver of purchase intent among 70% of global respondents, but quality is important, too. Two-thirds (67%) believe private labels offer extremely good value for money.

In North America, private-label share is 17.5% in the U.S. and 18.4% in Canada, which is just above the global average of 16.5%. The social stigma of store brands has virtually disappeared in the region, as the majority of shoppers are pleased with private label products, calling them a good alternative to name brands (75% of Americans, 73% of Canadians), a good value (74% of Americans, 66% of Canadians) and at parity with national brands on quality (67% of Americans, 61% of Canadians).

Around the world, private label sales and shares are strongest in commodity-driven, high-purchase categories and those where consumers perceive little differentiation, such as paper products, milk and some medications and remedies like aspirin. But the definition of a commodity varies greatly from country to country. In developed markets like the U.S., Europe and Australia, this includes products such as milk, bread and eggs. In India, however, commodities include products that are distinctly local, such as ghee, rice and atta flour used to make bread.

The Nielsen Global Survey of Private Label polled more than 30,000 Internet respondentsi in 60 countries to understand how consumer perceptions about private label quality, value, assortment and packaging translate into sales around the world.