Inflation Didn't Just Grow Private Label. It Changed Grocery Shopping Habits.

I don't think inflation changed grocery shopping as much as it changed grocery shopping habits. And habit is the key word here.

We've known private label has been growing for a while now, largely because grocery shoppers have been looking for ways to save money.

But one statistic in a recent FMI- The Food Industry Association report really stood out to me: 94% of shoppers said they'll continue buying store brands even if grocery prices come back down.

So what changed?

Consumers tried private label because they had to. During that time, retailers and manufacturers continued improving quality. Once shoppers realized the products were just as good for many of their everyday purchases, they built new shopping habits.

Grocery shopping is full of habits.

Most people don't think through every purchase they make each week. They find products they like, build a routine, and stick with it.

That's great news for retailers and private label manufacturers.

For emerging food brands, it creates a much bigger challenge.
If shoppers are already happy with a store brand, why should they switch?

I think brands have to give consumers a reason beyond price.

That could mean creating products that private label doesn't offer. It could mean solving a different problem, building a stronger brand people connect with, or creating an experience that shoppers remember.

Being another option on the shelf isn't enough anymore.

The brands that stand out will be the ones that give shoppers a compelling reason to change the routine they've already built.