More Consumers Buying Private Brands, Sale Items to Offset High Prices

Inflation may be moderating, but consumers are still focused on prices and continue looking for opportunities to make their grocery budgets go farther with more are turning to private brands, a new survey of shoppers from The Feedback Group found.

Of the 1,200 consumers surveyed, 44% of respondents said they are purchasing store brands over national brands, an increase of 6% from the same survey conducted in 2022. Consumers are also increasing their purchasing of products on sale (52% in 2023 vs. 43% in 2022) while 46% said they are eating home more to save money, a figure that stayed flat year-over-year.

"Food shoppers continue to adapt to cope with food inflation through a variety of strategies,” said Brian Numainville, a principal with The Feedback Group. “As consumers continue to display their resilience in the face of inflation, the findings clearly demonstrate that strategic buying behaviors have become pivotal components of their everyday shopping habits."

The survey also asked shoppers if, on their most recent visit, the prices of private label/store brands were less expensive than name brand alternatives. On a five-point agreement scale, the mean score was up to 4.16 this year compared to 4.06 last year, showing shoppers give store brands more credit in price compared to national brands this year versus last year. 

Shoppers were also asked if they believe the quality of private label/store brands compared well to name brand alternatives. Scores for both years were essentially similar, with 4.18 agreeing with the statement this year versus 4.20 last year.

Other key findings included:

• Purchasing more food and groceries at stores with lower prices (38%, down from 46%) 
• Buying fewer last-minute or impulse items (36%, up from 25%) 
• Using a store's weekly sales circular – paper or digital – to plan a shopping list (31%, up from 23%)
• Comparing prices at multiple stores before buying an item (29%, up from 18%) 
• Substituting similar, less expensive foods (27%, up from 24%)
• Purchasing more bulk-pack items to lower price per serving/unit (26%, up from 25%), 
• Purchasing food for home that is less healthy but also less expensive (22%, up from 15%) 
• Buying fewer organic items and products to cut costs (16%, up from 12%)