PLMA market basket survey shows savings on store brand specialty items

Consumers trying to maintain or improve their health are increasingly seeking out specialty food and non-food alternatives such as organic, gluten-free, dye-free and lactose-free items. Although these products can be costly in comparison to traditional products, a new market basket survey from the New York Private Label Manufacturers Association (PLMA) found that store brand specialty items can offer significant savings to consumers.

PLMA said it assembled a market basket consisting of 27 specialty products that consumers might typically purchase as healthful alternatives or for special dietary needs. The products included gluten-free items such as pancake mix and chicken broth, organic products such as milk and pasta, non-food allergy-free items such as dye- and perfume-free laundry detergent, and more.

For every category in the survey, PLMA compared a leading national brand product, when available, to a similar store brand product, when available, and adjusted prices to account for all known discounts, coupons and promotions available for each of the four shopping visits (conducted over a three-week period beginning June 7 and ending June 28).

Some organic private brand items on the shelves had no name-brand equivalent, PLMA noted. However, when a national brand was available for comparison, store brand alternatives saved consumers 15 percent on average. And when it came to gluten-free items, store brand products cost an average of 17 percent less than their national brand counterparts — and some store brand products saved shoppers as much as 41 percent. Items such as soy burgers, lactose-free milk and low-salt chicken broth, meanwhile, were priced at almost 30 percent less, on average, than their national brand equivalents.

On the non-food side, PLMA found that store brand dye- and perfume-free laundry detergent and makeup remover towels cost an average of 26 percent less than national brand equivalents.

PLMA pointed to strong opportunities for store brands in the organic, gluten-free and allergy-free segments.

"Kroger's Simple Truth Organic has become a billion-dollar brand for the retailer, while other retailers like Costco and Target are expecting billions of dollars in organic food sales this coming year," PLMA said. "According to Mintel, gluten-free sales have grown 63 percent since 2011, and gluten-free sales will top $8 billion this year. … Looking beyond organics and gluten, the Food Allergy Network reports 15 million U.S. adults and children suffer from food allergies, while another 5 million are allergic to various chemical products."