Supermarket News Mentions First Insight | Consumer Confidence In Store Brands Remains Strong
Private-label brands are creating shopper confusion, according to a new study from global retail platform First Insight.The study, “The Quiet Takeover of Private Label,” indicates that traditional distinctions between private labels and national brands have become so subtle that most consumers can’t tell the difference.
Results show that 71% of surveyed consumers believed they could recognize a private label when making a purchase, but 72% failed to do so when shown side-by-side images of store-brand and national-brand products.
The First Insight study shows that shoppers enjoy finding “the dupe.” Nearly half (47%) of consumers say they’ve tried a private-label product specifically because it was a duplicate of a name-brand item.
In addition, 44% of shoppers—including 70% of those earning more than $150,000 per year—say they’re more likely to try a private label if it’s marketed as a dupe of a high-end product.
Private label also continues to gain a strong foothold in the grocery marketplace.
During the first quarter of 2025, store brands outperformed commercial brands in both dollar and unit sales across all U.S. retail outlets, according to the Private Label Manufacturers Association (PLMA).
Private label captured 21.5% of the market share in dollar sales and 23.7% in unit sales during the quarter, according to data from Circana.
In each of Circana’s last 30 monthly reports, store brands have finished ahead of national brands in year-over-year data.
“Shoppers aren’t loyal to brand names the way they used to be,” said Greg Petro, CEO of First Insight. “They’re loyal to price, quality, and marketing. This creates a highly competitive arena where the best—yet not necessarily the most well-known—brands will win.”
Other insights from the First Insight study include:
- 77% of consumers are not concerned with how they are perceived for purchasing private-label products
- While 48% of consumers still identify as brand loyal, more than half say they are either brand curious or motivated by price and savings
- More than seven in ten consumers say they would be willing to try a private label if their preferred national brand was out of stock
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Once consumers make the switch and feel satisfied, 45% say they have permanently switched from a national brand to a private label when the product met or exceeded expectations
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66% of consumers say they recommend private-label products to friends and family, and 34% say they’re more likely to shop at a retailer specifically because of its private-label offerings
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