The number of private label products in the grocery sector is growing. As inflation continues to rise, cost conscious consumers are increasingly purchasing more economical grocery store private label brands. While cost is one factor driving the growth of private label brands, food retailers and manufacturers are using other strategies to ensure this growth remains strong. To keep private label product market share growing, these enterprises are investing in sustainable, inclusive packaging to align with consumer preferences and provide a better consumer experience.
A Power of Private Brands 2022 report by the Food Industry Association revealed that 40% of consumers have bought more private brands since before the pandemic, and three-quarters of these shoppers plan to continue this trend.
While national brands dominate grocery store shelves, private label brands are rapidly expanding. According to data from the Private Label Manufacturers Association (PLMA), store brands’ annual dollar volume increased by $1.9 billion, setting a new record of $199 billion for sales in all U.S. retailing channels.
The report noted that retailer brands are an important piece of the U.S. grocery business and predicted that “store brands will be a key consumer ally during this current inflationary period and going forward by providing high-quality, high-value products in every category.”
In the grocery sector, private label products account for 17.4% of sales while branded products account for 82.6%. However, private label sales are expected to increase as food retailers and manufacturers ramp up investment in their brands. The Food Industry Association’s survey found that 80% of food retailers and manufacturers expect to increase investment in private brands over the next two years to accelerate growth of this product segment. The survey also revealed that for 58% of respondents, improving product packaging is a key acceleration strategy.
As part of improving product packaging, food retailers are paying particular attention to delivering on consumer preferences for sustainable, inclusive packaging. Brands are aligning with these preferences by turning to packaging solutions like CCT’s EEASY Lid.
In fact, forward-thinking grocery retailer Boyer’s Food Markets recently debuted the EEASY Lid on its new in-house private label pasta sauce line in all 19 of its stores across Pennsylvania. The patented EEASY Lid allows consumers to vent a jar with a simple press of a button on the lid, reducing the amount of effort needed to twist off a jar lid by up to 50%. With the EEASY Lid topping their private label line of pasta sauces, Boyer’s is not only giving people a great product, but a better consumer experience.
A better consumer experience can translate into more market share. Boyer’s experienced first-hand how significantly a better consumer experience can accelerate growth for private label brands. In 2020, Boyer’s ran a case study with the EEASY Lid on a private-label pasta sauce brand. At the end of the study, sales of the sauce jars with the EEASY Lid increased by 341%.
When it comes to consumer product preferences, packaging matters. Contact us today to accelerate the growth of your private label brand with the EEASY Lid.