Price and quality driving demand for own brand products

The study surveyed more than 3,000 shoppers in the UK, France, Germany, Italy, Poland and Netherlands, with 85% of respondents highlighting price as the primary reason for them choosing own brand products over branded alternatives.

Promotions were highlighted as the second biggest factor in determining a consumer’s decision to purchase private label items, mentioned by 48% of respondents.

Of those that have sought out own brand products due to their lower price point, 51% said they will continue to buy them due to their quality. When discussing what determines the quality of a product, the most common answers were ‘better taste’, ‘local production’ and ‘cleaner ingredients’.

Sustainability and packaging concerns also influence consumer behaviour and the likelihood they will purchase private label products.

More than 40% believe that efforts have been made to improve the sustainability of own brand products and 34% said they have seen progress in reducing food waste. A third felt that more sustainable packaging has become more common, while 28% stated that more sustainable packaging influenced their decision to buy private label products.

However, 35% answered that less excessive packaging should be used.

Quality still important to demand

Strategic marketing and value chain manager at Amcor, Madalina Mitru, said that despite concerns around price and sustainability, the quality of own brand items was a “crucial factor​” in their success.

Mitru explained: “Taste, quality, and origin are all still important when consumers are making purchasing decisions​. Furthermore, over half of [respondents] said they perceive no difference in the quality of private-label products versus branded ones, putting private-label brands in a strong position for the future​.”

According to Mitru, the results also show that consumers increasingly expect both private label and brand products to be produced and packaged sustainably.

“Retailers and brands can adopt more sustainable packaging to help retain customers and demonstrate their continued commitment to driving circularity and reducing their carbon footprint​,” she said.

Elsewhere, potato supplier Branston has named the new manager of its protein extraction facility, which is due to launch next year​​.