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Private-label product introductions outstripping national brands

‘Benefit loyalty is replacing brand loyalty,’ Mintel exec tells Food Marketing Institute Show audience. ‘Consumers want their needs met.’
FILED IN:  Package design  > Structural

New research by Mintel shows that new product launches in the U.S. did an about-face in 2009, falling 20% after an aggregate gain of 23% between 2006 and 2008. However, the decline was not as steep for private-label brands. Moreover, store brands’ share of all new products increased from 16.6% in 2006 to 24.7% in 2009, Mintel says.

What’s behind the proportionate growth in new products for private label? Supermarket News, quoting Lynn Dornblaser, Director, CPG Trend Insight at Mintel International Group, who spoke at the recent FMI Show, identified one significant reason: “There’s less loyalty to brands, because benefit loyalty is replacing brand loyalty,” Dornblaser told her audience. “Consumers want their needs met. If a PL can respond, consumers are less likely to go back to brands.”

However, Dornblaser added, current trends at shelf offer both national brands and private-label brands opportunities to get in front of consumers. These include simplicity, sustainability, value, and clear on-pack communication.

Additional Mintel observations about trends at shelf and factors driving private label’s growth are being discussed in-depth at this year’s Shelf Impact! Package Design Workshops.

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