The competition between retailer private labels and National Brands in the U.S. has increased dramatically over the past few years. Private labels have continued to gain market share in many product categories. We’ve seen such dramatic growth in private label market share that store brands now account for over 22% of the CPG products sold in the U.S.

The private label consumer was once thought of as financially challenged and willing to sacrifice quality. With the increase in private label purchasing, however, it is logical to assume that the private label consumer is looking more and more like the National Brand consumer everyday. The growth in private label product consumption is fueled directly by consumers who are responding differently to private label products. Consumers are changing their attitudes and their behaviors, becoming more accepting of private label products in many categories. Surveyed shopping attitudes and behaviors trended over the last five years indicate consumers are becoming less susceptible to brand advertising, more price conscientious, and more careful in their purchasing decisions (see Figure 1). Often the reasons for these changes come in multiple forms such as economic pressures, sticker shock for national brands, and retailers developing their brands to be more competitive with national brands.

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