Private brand consultancy Daymon has shared its newest report, 2022 Holiday Expectations, detailing consumer attitudes towards gathering, spending and private brands ahead of the holiday season.
Like other reports, Daymon found that most consumers plan to celebrate the holidays with groups again. Four out of 10 people will be hosting holiday events. Gen Z, those aged 18-25, said they will be hosting events this year at the same rate as Millennials, those aged 26-38.
With more gatherings comes more spending on grocery and home items, and Daymon’s report finds that the overwhelming majority of those surveyed said they expected to spend more on holiday groceries because of price increases. Of those surveyed, 85% said they will spend on gifts this year, while 91% expect to spend about the same or more on holiday groceries.
Flavor, price, brand familiarity and premium quality ranked as the top four factors for deciding which brand to buy for holiday gatherings. Daymon’s survey found that 95% of shoppers were interested in purchasing private brands this holiday season. Six out of 10 shoppers surveyed said they are interested in buying private brand dairy (eggs, milk, yogurt, cheese, ice cream, etc.) products as well as meal ingredients (pasta, baking mixes, condiments, spices, canned goods, etc.) this holiday season.
In the lead up to Thanksgiving, several retailers promoted private brands and packaged meal deals as a way to attract customers who are cooking on a budget. With increased interest in private brands heading towards the December holidays, Daymon noted six takeaways from the report for retailers: support in-person gatherings, leverage private brands, push innovation in preparation for holiday 2023, support lifestyle needs, lean into omnichannel and price competitively.
“Meet shopper needs across all touchpoints – strategic planogram placement, digital shelf, search functions, and social media involvement,” advised Daymon in the report. “Consumers will be looking to private brands as a solution to save money, but this season will also be an opportunity to enforce private brand quality and drive long-term loyalty by driving value across all brand tiers. Given the propensity for brand switching, it is especially critical to ensure private brand planogram placement is ideal to convert purchases and generate trial."
The full report can be found here.