Editor’s note: Sam Killip is vice president of customer success at Attest.
The biggest brands in America are feeling the impact of inflation and the cost-of-living crisis on long-established consumer behaviors. New research shows shoppers are moving away from household names and putting private-brand goods in their baskets.
While food and beverage brands may find this hard to swallow, they should be further worried that many Americans plan to stick to their new diets when inflation eases. According to data from the latest Attest U.S. Food and Beverage Trends Report, 73% of consumers would now stick with private-label brands, regardless of price.
However, marketers and researchers working for supermarkets and retailers might find the report more to their taste, with own brands such as Target's Good & Gather, Safeway's Safeway Select and Walmart's Great Value eating away at the popularity of bigger brands. More than 58% of Americans say they are "very likely" to purchase these cheaper alternatives, with a further 27% "somewhat likely.” Only 4% of Americans wouldn't consider buying private-label brands.
The major concern for household-name brands that can't compete on price is that these shifts in shopping habits may be permanent for several important sub-segments. Of these, 34% say they will "definitely" carry on buying private-brand goods, while 39% say they will "probably" keep them in their shopping baskets. Only 9% aren't planning to stick with these lesser-known brands long-term.
In this inflationary climate, shoppers are putting the pursuit of value above all else when stocking their cupboards. Nearly nine out of 10 (89%) consumers say they are bargain-hunting when grocery shopping, with 41% visiting multiple supermarkets in-person to find the best deal and 33% carrying out their price analyses online.
Some Americans even admit that inflation has caused them to give up shopping...