Gen Z Shoppers and the Power of Private Brands

<blockquote class="unquoted">This is the fourth installment in a new FMI blog series on Gen Z grocery shopping habits. This series will share compelling research and cover aspects ranging from shopping behaviors to attitudes about values.</blockquote><p>By: Avery Collins, Intern, Communications and Marketing, FMI</p><div class="mg-image–circular" style="float:right;margin:10px;"><img sf-custom-thumbnail="true" src="https://www.fmi.org/images/default-source/blog-images/delicious-chips-salsa.jpg?sfvrsn=a76cb187_1" sf-size="100" width="600" alt="Chips and Salsa" sf-constrain-proportions="true" /></div><p>When shopping, I find myself searching for products that meet my expectations without breaking the bank. I look for the least expensive options that offer the best value, quality and taste. This mindset is common in my generation. Other Gen Z shoppers prioritize this blend of affordability, taste and quality of their purchases.</p><p>In college, there were many times at the end of the month where I had already blown most of my budget on unnecessary or extravagant purchases. I struggled finding inexpensive meal solutions and products that offered what I was looking for. Until one day, wandering through the aisles, my attention was caught by the packaging of my store’s private brand. Promising organic ingredients at a fraction of the price of the leading national brands, I was skeptical, but also curious. I decided to give it a try and to my surprise, it was delicious! It was the first time I realized I could have both quality and affordability when it came to my meals. To this day, the pasta has become a staple in my pantry and all my favorite products are from the same national private brand. </p><p>When looking at finding value in private brands, Gen Zers don’t perceive value based solely on price; compared to 68% of the general population, only 51% of my generation find value in price alone. </p><p>Recently, I hosted a gathering at my house and needed snacks. I opted for my store’s private label chips and salsa because I knew they would deliver with their natural ingredients and bold flavors. Unfortunately for me, there was nothing left afterwards. My friends had eaten it all!</p><h5>Quality, Taste, Health and Uniqueness</h5><p>We consider how brands complement the overall shopping experience &mdash; purchasing more private brands for quality (44%) and taste (39%) .</p><p>We care about health and well-being for both ourselves and others. More of us find value in private brands that avoid unhealthy items (25% vs. 20% overall) and products that are made ethically (22% vs. 15% overall).</p><p>Gen Z is reshaping the grocery landscape, favoring private brands that offer a blend of quality, taste and affordability. As our purchasing power grows, the rising influence of private brands is primed to increase, reflecting a broader cultural shift towards this holistic notion of value.</p><p><a href="https://www.fmi.org/forms/store/ProductFormPublic/power-of-private-brands-2024" class="button">The Power of Private Brands 2024</a>&nbsp; &nbsp;&nbsp;<a href="https://www.fmi.org/our-research/research-reports" class="button-secondary">Research Reports</a></p>

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