Private Label Foods - US - February 2008

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Data sources
• Sales data
• Consumer survey data
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• The bottom line
• Making gains in some segments, losing in others
• Supermarkets find competition from other channels is increasing
• Demographic factors that impact private label sales
• More than half of respondents to Mintel' s research are their household' s primary shoppers
• Buying store brands
• Attitudes and opinions about store brands and national brands
• Market Size and Forecast
• Key points
• Market size remains steady
• Commodity-type products command greatest share of store-brand sales
  • Figure 1: Total U.S. sales and forecast of private label food (nine segments), at current prices, 2002-11
  • Figure 2: Total U.S. sales and forecast of private label food (nine segments), at inflation-adjusted prices, 2002-11
  • Figure 3: Total U.S. sales of total food in nine selected categories, in current and constant prices, 2002-07
• Competitive Context
• Key findings
• Private label accounts for about a quarter of total sales
  • Figure 4: Total sales and total private label sales, 2002-07
• Competition with national brands
• More convincing showing in "commodity" segments
  • Figure 5: "Commodity" segment sales of private label foods, FDMx, 2006 and 2007
• Competing in more challenging segments
• Private label product launches increase significantly in 2007
  • Figure 6: New product launches, private label food and beverages, 2002-07
• Segment Performance
• Key points
• Overall growth up 7% over two years
  • Figure 7: U.S. sales of private label food, by segment, 2005 and 2007
• Segment Performance--Milk
• Key points
• Milk is top private label category
• To remain competitive, private label expands to organic and specialty products
  • Figure 8: U.S. sales and forecast of private label milk, 2002-12
  • Figure 9: Total sales and total private label sales, milk, 2002-07
• Segment Performance--Dairy (Excluding Milk)
• Key points
• Eggs are biggest private label product
• Private label natural cheese sells better than processed products
• Price increases in dairy help store brands grow
  • Figure 10: U.S. sales and forecast of private label dairy (excluding milk), 2002-12
  • Figure 11: Total sales and total private label sales, dairy (excluding milk), 2002-07
• Segment Performance--Bread and Cereal
• Key points
• Private label bread is big seller
• Cereal lags behind as branded products remain strong
  • Figure 12: U.S. sales and forecast of private label bread and cereal, 2002-12
  • Figure 13: Total sales and total private label sales, bread and cereal, 2002-07
• Segment Performance--Sweet Goods
• Key points
• Like other bakery products, sweet goods have strong private label identity...
• ...but in ice cream, branded products still carry weight
  • Figure 14: U.S. sales and forecast of private label sweet goods, 2002-12
  • Figure 15: Total sales and total private label sales, sweet goods, 2002-07
• Segment Performance--Vegetables
• Key points
• Plain vegetables have strong private label showing
• Store-brand innovation weak in the segment
  • Figure 16: U.S. sales and forecast of private label vegetables, 2002-12
  • Figure 17: Total sales and total private label sales, vegetables, 2002-07
• Segment Performance--Refrigerated Entrées and Frozen Seafood
• Key points
• Private label sales of refrigerated entrées growing
• Frozen seafood is also growing area for store brands
  • Figure 18: U.S. sales and forecast of private label refrigerated entrées and frozen seafood, 2002-12
  • Figure 19: Total sales and total private label sales, refrigerated entrées and frozen seafood, 2002-07
• Segment Performance--Carbonated Beverages
• Key points
• Branded products rule
• Store brands can compete in flavored carbonated water sub-segment
  • Figure 20: U.S. sales and forecast of private label carbonated beverages, 2002-12
  • Figure 21: Total sales and total private label sales, carbonated beverages, 2002-07
• Segment Performance--Salty Snacks
• Key points
• As with carbonated beverages, private label makes few inroads in salty snacks
• Pork rinds and pretzels show stronger private label sales
  • Figure 22: U.S. sales and forecast of private label salty snacks, 2002-12
  • Figure 23: Total sales and total private label sales, salty sancks, 2002-07
• Segment Performance--Pizza
• Key points
• Private label losing ground in refrigerated sub-segment
• Store brands comprise less than 10% of frozen sub-segment
  • Figure 24: U.S. sales and forecast of private label pizza, 2002-12
  • Figure 25: Total sales and total private label sales, pizza, 2002-07
• Retail Channels
• Key points
• Supermarket private label dominates
  • Figure 26: U.S. sales of private label food, by retail channel, 2005 and 2007
• Retail Channels--Supermarkets
• Key points
• Private label sales grow as food prices rise
• A wide range of strategies
• As consumers shop a more diverse array of channels, they are offered a wider array of private label products
• Tesco enters the American market; will consumers' attitudes towards private label change?
  • Figure 27: Supermarket sales of private label food, at current prices, 2002-07
• Market Drivers
• Household income affects spending on food
  • Figure 28: Share of expenditures for food at home, by income, 2006
• Age also influences purchase patterns
  • Figure 29: Population aged 18+, 2002-12
• Hispanics are more likely than average to purchase store brands
  • Figure 30: Population, by race and Hispanic origin, 2002-12
• Who Shops for Food?
• Key points
• More than half of food shoppers shop alone
  • Figure 31: Participation in household food shopping, by gender, age, household income, race/Hispanic origin and marital status, January 2008
• Where Grocery Shoppers Buy Their Food
• Key points
• Income determines food shopping venues
  • Figure 32: Grocery shopping venues, by income, January 2008
• How Much They Spend
• Key points
• Mean spending varies by demographic characteristic
  • Figure 33: Mean weekly spending on food, by gender, age, household income, race/Hispanic origin and marital status, January 2008
• Buying Store Brands
• Key points
• Age matters
  • Figure 34: Percentage of weekly store-brand food purchases, by age, January 2008
• Where Shoppers Buy Store Brands
• Key points
• Supermarkets are source of store brands for more than seven in ten respondents
  • Figure 35: Venues for the purchase of store-brand food, by age, January 2008
  • Figure 36: Venues for the purchase of store-brand food, by income, January 2008
• Which Store Brands Do They Buy?
• Key points
• More store brands than ever
  • Figure 37: Propensity to purchase specific store brands, January 2008
• Frequency of Purchasing Store Brands
• Key points
• What they buy
  • Figure 38: Frequency of purchasing specific store-branded products, by age, January 2008
• What they don' t buy
  • Figure 39: Likelihood of not purchasing specific store-branded products, by age, January 2008
  • Figure 40: Likelihood of not purchasing specific store-branded products, by income, January 2008
• Opinions about Store Brands and National Brands
• Key points
• For more than seven in ten respondents, store brands are equal in quality to name brands
  • Figure 41: Opinions about nationally branded and store-branded products, by age, January 2008
• Appendix: Other Useful Consumer Tables
  • Figure 50: Grocery shopping venues, by race/Hispanic origin, January 2008
  • Figure 51: Percentage of weekly store-brand food purchases, by race/Hispanic origin, January 2008
  • Figure 52: Frequency of purchasing specific store-branded products, by income, January 2008
  • Figure 53: Frequency of purchasing specific store-branded products, by race/Hispanic origin, January 2008
  • Figure 54: Likelihood of not purchasing specific store-branded products, by race/Hispanic origin, January 2008
  • Figure 55: Opinions about nationally branded and store-branded products, by race/Hispanic origin, January 2008
  • Figure 56: Opinions about nationally branded and store-branded products, by income, January 2008
• Appendix: Trade Associations