Private label brands market makes healthy eating more affordable
Consumers searching their grocery store aisles for healthier food options often fear eating healthy will come at too high of a cost, but a new study from Packaged Facts says manufacturers and retailers are addressing these wellness and nutrition concerns by offering more affordable healthy food options.
The study, Private Label Foods & Beverages in the U.S., 8th Edition, reports some retailers are building private label brands around the position of affordable healthy eating.
“Store brands have moved far beyond cheap generic knock-offs to become trusted, quality lines that can compete effectively with national brands,” said David Sprinkle, Packaged Facts research director. “They usually have higher profit margins for retailers than name brands, help differentiate a retailer from competition, and help build consumer loyalty.”
Researchers say private label products accounted for almost a fifth of the $530 billion total food and beverage market dollar sales in 2013. Packaged Facts estimated retail dollar sales of private label food and beverages were $102 billion in 2013, up about 2 percent. Food products accounted for approximately 80 percent of the private label segment's sales.
Packaged Facts projects the retail dollar sales of private label food and beverages will grow by a compound annual growth rate of 4 percent, reaching $122 billion in 2018.
The full report can be found here.
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