New NPD report reveals rise in private-label usage for products

CHICAGO Tough economic times certainly have been a boon for private-label foods and beverages, but according to The NPD Group, a market research company, private-label usage has been growing over the last decade.

According to a new NPD report, "Private Label Perceptions, Usage Patterns & Intentions," last year, 24% of all food and beverages served in American homes were store brands, up from 18% in 1999. Today, 97% of all households consume private-label foods on a regular basis.

“There is no question that private-label foods have become an integral part of American life,” said Harry Balzer, chief industry analyst at NPD and author of Eating Patterns in America. “Furthermore, we do not hide private-label foods as an ingredient or as an additive to another dish. Today over half of all store-brand food eatings are the end dish.”

Price and value are the chief reasons why consumers purchase private-label or store brands, according to an NPD survey of grocery shoppers, but most respondents also feel that the quality of store brands is often equal to, or in some cases better than, name brands. Users of private-label foods and beverages span all income levels and demographic profiles.