Inflation accelerates private label share and penetration
In its report, “Inflation Accelerates,” about the ascent of private label brands in the grocery space, DataWeave (a retail data, pricing and AI analytics company) explores the reasons behind and numbers backing the rise in popularity of private label food brands and products resulting from the pandemic, and now rising inflation.
Prior to the Covid-19 pandemic, adoption of e-commerce in the U.S. grocery sector lagged behind other retail sectors. The pandemic quickly and significantly impacted its trajectory as grocers witnessed 20% to 30% of their businesses shift online amid the sudden surge in demand for contactless shopping. During 2020, online penetration in the grocery sector witnessed a threefold increase from pre-pandemic levels. At the same time, nearly half of consumers explored new private label brands online to meet their grocery needs during 2020, and many have continued using these alternatives due to continued shortages and supply chain issues brands have faced throughout the pandemic.