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10/19/2021

Consumers expect to buy more store brands this holiday season

Consumer survey from marketing analytics company finds shoppers planning to spend more, gather more, including on private label.
Zachary Russell
Associate Editor
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According to a new study, nearly a third of shoppers surveyed expect to purchase more store brand products this holiday season.

Marketing research company Vericast, San Antonio, shared insights from its "2021 Holiday Consumer Intel Report," addressing what consumers’ attitudes are toward the upcoming holiday season, particularly when it comes to saving money. In addition to buying more private brand products to save, the survey found 33% are looking for more coupons and discounts and 22% are choosing where to shop by comparing prices in both printed and online store circulars — both tactics that could improve private brand sales this season.

27% of consumers surveyed said they are purchasing more store brand products.
Vericast holiday research

"Generally, private brands offer a price advantage versus national brands, but a tried-and-true approach to getting trial and repeat is to offer incentives, such as coupons, especially during the highly competitive holiday season,” said Julie Companey, director of client strategy and grocery, drug, and mass channels at Vericast, in an interview with Store Brands.

The survey of 1,000 people 18 and up found that holiday shopping is starting earlier this year due to shipping delays experienced with online shopping last year, and it's impacting how consumers will shop this season. For example, the study found:

  • 55% of respondents plan to shop in person as a result;
  • 53% of consumers agreed they need better solutions to save more money on shopping;
  • 59% wished there were more coupons available during the 2020 holiday season.

Additionally, the survey looked at how the pandemic could impact shopping this season and again it's leaning into them looking to save, which could benefit own brands. Survey results included:

  • 78% of respondents said they increased savings behaviors during the pandemic, and 84% plan to continue over the next year;
  • 15% are purchasing more store brand products because brand name ones are not available;
  • 60% reported that they have become more budget conscious due to COVID-19 and half are looking for ways to save money;
  • 42% are looking for more ways to save because food prices are higher, up 11 points from March 2021 when 31% of consumers reported this.

The survey also showed that Americans will be spending more time with friends and family this year, with close to 60% of the country vaccinated against COVID-19.

The study found that 74% believe hosting or attending holiday gatherings with family or friends will occur this year, with 93% of those planning to host holiday gatherings, saying they will spend the same or more than last year. Of that 93%, 37% will spend more to enhance the guest experience.

According to Vericast, this data could mean more sales of private label products.

“Private brands have expanded their selections to include indulgent flavors, organic ingredients, and unique or exotic themes,” Companey told Store Brands. “Retailers like Target are taking advantage of consumers’ desire for innovation after a year of cooking at home and getting tired of the same old recipes. We have all noticed that inflation is impacting food prices, and looks to be holding for the coming months."