Store Brands Gain Popularity Among Gen Z and Millennials

  • Private label sales reached a record $271 billion in the US last year
  • Unit sales of store brands increased by more than 2% since 2021 while national brands decreased by nearly 7%
  • 99.9% of U.S. households purchased at least one private label grocery item in the past 12 months
  • Price is no longer the only determining factor for consumers when choosing private labels
  • Retailers will focus on innovation, localization and regionalization to build brand equity

Inflation has driven the growth of private label products in the US, with sales reaching a record $271 billion last year. Store brands have seen an increase of over 2% in unit sales since 2021 while national brands decreased by nearly 7%. Private labels are becoming more popular among Gen Z and millennials as they seek value and quality. According to Circana, private label growth will continue with retailers investing more aggressively and focusing on innovation, localization, and regionalization to build brand equity. Price is no longer the sole factor for consumers when choosing private labels.

Factuality Level: 8
Factuality Justification: The article provides accurate information about the growth of private label sales in the U.S., citing sources and expert opinions on the topic. It presents data from various reports and discusses potential future trends without making any personal or biased statements.
Noise Level: 3
Noise Justification: The article provides relevant information about the growth of private label sales in the U.S., citing data and expert opinions. It discusses trends and potential future strategies for retailers. However, it lacks a deep analysis or exploration of the consequences on various stakeholders, antifragility aspects, or actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses the growth of private label sales in the U.S., which can impact companies in the food and consumer goods industries, particularly those producing national brands. This has financial relevance as it affects their sales and market share.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.

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