This trend is driven by several factors, including consumer preference for value, the rise of online shopping, and the increasing sophistication of private label offerings. The report highlights the growing popularity of private brands, particularly in the grocery sector. In 2022, private label grocery sales reached $700 billion, representing a significant 28% share of the total grocery market.

This shift in consumer behavior is driven by several factors, including rising prices, a desire for value, and a growing awareness of sustainability. Let’s delve deeper into the reasons behind this trend. **1.

First, private brands are no longer just about cost savings. They’re about creating a unique and compelling brand experience that resonates with consumers. Second, retailers need to invest in building a strong private brand portfolio, with a focus on innovation and differentiation.

This lack of cooking skills is a significant barrier to entry for many Gen Z shoppers, as it limits their ability to prepare fresh ingredients and utilize them in creative ways. The report also highlights that Gen Z shoppers are increasingly interested in sustainable and ethical food choices. This is driven by a desire for transparency and a growing awareness of the environmental impact of food production.

A. Gen Z: The New Frontier of Retail
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* Retailers need to understand Gen Z’s unique preferences and behaviors. * Retailers should leverage social media platforms to reach Gen Z. * Retailers should adapt their marketing strategies to appeal to Gen Z’s values and interests. * Retailers should learn to “speak Gen Z” to effectively communicate with this demographic.

Retailers are transforming their general merchandise (GM) from basic value offerings to highly sought-after goods. This transformation is driven by several factors, including:

* **Shifting consumer preferences:** Consumers are increasingly demanding more personalized, curated, and unique experiences. * **Technological advancements:** E-commerce platforms and social media have empowered consumers with access to vast amounts of information and diverse product options.

They use this information to develop a deep understanding of consumer behavior and anticipate future needs. This approach allows them to create products that are not only on-trend but also highly desirable. Daymon’s expertise in trend forecasting and consumer behavior analysis is evident in their work with various brands. For example, they partnered with Nike to develop a line of sustainable sneakers, incorporating recycled materials and innovative design features.

But parents need more options throughout the year – and retailers can help. Through private brand innovation, retailers can provide parents of school-age kids with healthier, more convenient and more creative solutions, Capps said. Retailers should consider lunch kits, snack pack sizes of salty-snack options, different formats of the ever-popular fruit snacks and other innovations. Quality is paramount. After all, one negative experience could dampen enthusiasm not just for the product in question, but for the entire private brand and the retailer. The good news: 85% of consumers perceive private brand quality to be as good as or better than national brands, according to the PBIR report.

“There’s a real opportunity to better strategize throughout the year on new flavors and develop products that are kid-focused,” Capps said. “Parents are all busy. We’re all strapped. How do you make it healthier and easier for them?” Read the full Private Brand Intelligence Report here.