IRI finds consumers still turning to private labels in stable economy
Economic indicators have been shaken by severe fall weather, but the economy still appears to be healthy and strengthening. However, 31 percent of U.S. households are struggling to afford groceries in Q3 2017, in line with the same period in 2016 but up from 28 percent in Q1 2016, according to IRI Consumer Connect survey results released recently. Consumers are continuing to rely on private label products to help make ends meet, but the role of private label in packaged goods goes way beyond money saving. To get a clear perspective of the many roles of private label, IRI also is releasing “Private Label 2017,” which examines the latest private label trends.
Results from the IRI survey also revealed that younger and less-wealthy shoppers are struggling more than others. A full 59 percent of consumers from households earning under $35,000 per year and 36 percent of millennials are having difficulty affording groceries. As a result, 89 percent of these lower-earning shoppers and 90 percent of millennials are buying private label brands to save money. And 81 percent and 83 percent, respectively, will try lower-priced brands to save money compared with 73 percent of all consumers.