PLMA: 64% of Gen Z shoppers buy private brands always or frequently

As younger shoppers look to save, private label products are becoming increasingly popular with Gen Z.

In a survey by the Private Label Manufacturers Association (PLMA), more than two-thirds (67%) of Gen Z shoppers say they are “extremely/very” aware of store brands. A similar number (64%) say they buy store brands “always/frequently,” while more than half (56%) say they are “extremely likely/likely” to experiment with store brands to find “best value,” and 51% say they “always/frequently” choose a place to shop due to its store brands. 

“Gen Z store brand purchase frequency is most strongly driven by a perception that store brands are 'reliable,’” said Sara Williamson, Ph.D., Assistant Professor of Marketing at SUNY Old Westbury, who analyzed the survey results and presented her findings at PLMA’s recent 2023 U.S. Private Label Trade Show in Chicago. “Reliability perception is a stronger store brand purchase predictor than any other measure, including household income and monthly grocery spending." 

Respondents to the PLMA survey described private label products in a variety of ways, reflecting overwhelmingly positive feelings:

• 53% said “valuable” describes store brands “precisely/very much”
• 52% said “reliable” describes store brands “precisely/very much”
• 50% said “variety” describes store brands “precisely/very much”
• 48% said “trustworthy” describes store brands “precisely/very much”
• 45% said “quality” describes store brands “precisely/very much”
• 42% said “credible” describes store brands “precisely/very much”

With food prices remaining high due to inflation, brand loyalty has taken a hit with Gen Z, leading to increased interest in private label products. According to PLMA’s data, only 32% of those surveyed said that they are more brand loyal than other people. Nearly half (47%) said they look for alternatives when their preferred brand increases in price. More than half (55%) say they are highly likely to recommend brands to family and friends when they are satisfied.

“To succeed with Gen Z, retailers must establish a foundation of store brand suppliers who meet their customers' quality expectations,” Williamson added.

The survey consisted of 934 respondents between the ages of 18 and 28. The full report can be found here.

Founded in 1979, PLMA represents more than 4,500 manufacturers worldwide. The organization has offices in New York City and Amsterdam.