Study: Own food brands grow in popularity

NEW YORK According to the study, A New Look at the Private Label Consumer by Catalina Marketing Corp. and Daymon Worldwide, own brand food and consumables enjoyed 5% growth worldwide over the past eight years versus 2% for national brands.

In the Unites States, private label has grown at twice the rate of national brands. Today, 71% of consumers are purchasing private label. Consumers are purchasing private labels on 35% of shopping trips and those who are buying own brands are spending 2.6 times more money. The average spent per shopping trip for private label purchasers is $58.51 while those who disown own brands spend only $22.11.

Of private label purchases, 85% are of national brand equivalent products, while 9% are of premium private labels, 4% value and 2% organic. Looked at from a best in class perspective, the scope of opportunity emerges. For example, best-in-class premium private label sellers manage a 16% of sales rate versus the 9% average. Value and organic leaders fare even better. Best in class organic retailers derive 7% of sales from private label versus the two percent average while top value own brand sellers garner 20% of sales from private label versus the 4% average. The key to growth, Catalina and Daymon determined, is category expansion.