Insight of the Day: 3 Key Takeaways From the 2024 Private Label Trade Show

Findings

1. Private Label Growth: Store brands are outperforming national brands, with sales growth outpacing national brands (2.3% vs. 1.1%) in 2024.

2. Focus on Innovation: Innovation is essential to excite customers, as highlighted by ALDI USA's president.

3. Emerging Product Trends: Key innovations include premium at-home coffee solutions, globally inspired dips, and spicy snacks catering to evolving consumer preferences.

Key Takeaways

1. Coffeehouse at Home:

   • Consumers are replicating coffee shop experiences at home with toppings, syrups, and cold foams.

   • Innovations like plant-based oat cold foaming creams and flavored coffee toppers in aerosol cans offer convenience and premium quality.

2. Global Dips and Spreads:

   • Demand for bold, globally inspired flavors like muhammara and labneh reflects Americans’ interest in adventurous, healthy snacking.

   • Health-conscious dips use ingredients like yogurt, kefir, and cottage cheese to add probiotics and protein.

3. Spicy Snacks:

   • Spicy flavors are a growing trend, driven by Gen Z’s preference for bold, adventurous snacks.

   • Products like rolled tortilla chips, peri peri nacho crisps, and Kung Pao chicken crackers dominate the spicy snack category.

Trend

• Premiumization of Private Label: The private label industry is focusing on offering high-quality, innovative products to compete with national brands.

Consumer Motivation

• Convenience: Consumers want easy-to-use, high-quality solutions for replicating premium experiences at home.

• Adventurous Flavors: Exploration of global and bold flavors is key to attracting modern, diverse audiences.

• Health-Consciousness: Shoppers seek better-for-you options, such as probiotic dips and high-protein snacks.

What is Driving the Trend

• Economic pressures encouraging consumers to turn to private labels for affordability without compromising quality.

• Increasing consumer interest in health, authenticity, and global culinary exploration.

People the Article Refers To

• Retailers: Those innovating in the private label space to attract and retain consumers.

• Consumers: Budget-conscious individuals looking for premium, health-conscious, and globally inspired products.

Description of Consumers

• Age Range: Broad appeal, with strong representation from Millennials and Gen Z.

• Behavior: Value-driven shoppers who prioritize premium experiences, bold flavors, and health benefits at an accessible price.

Conclusions

• Private label brands are solidifying their place as premium, innovative alternatives to national brands.

• The focus on product differentiation through global flavors, health benefits, and convenience reflects evolving consumer expectations.

Implications for Brands

• Innovate to offer private label products that mimic or surpass the quality of national brands.

• Focus on unique product offerings that appeal to adventurous, health-conscious, and convenience-seeking consumers.

Implications for Society

• Increased accessibility of premium-quality products at a lower cost democratizes indulgent experiences.

• Private label innovation contributes to a shift in consumer perception of store brands as high-quality and desirable.

Implications for Consumers

• Consumers benefit from affordable, premium-quality options that align with their health and flavor preferences.

• Access to innovative and globally inspired products enhances everyday eating experiences.

Implications for Future

• Private labels will continue to expand their share in the market, leveraging innovation and premiumization to compete with national brands.

• Emerging trends like functional health benefits and global flavors will dominate product development in the coming years.

Consumer Trend

• Affordable Premiumization: Delivering high-quality, innovative products at accessible price points.

Consumer Sub-Trend

• Global Flavor Exploration: Increasing demand for globally inspired flavors, especially in dips and snacks.

Big Social Trend

• Accessible Indulgence: Democratizing access to premium experiences through innovative private label products.

Local Trend

• Growth of health-oriented and flavor-rich private label products in U.S. grocery stores.

Worldwide Social Trend

• Private label premiumization as a global movement, making quality accessible across markets.

Name of the Big Trend Implied by Article

• "Private Label Premiumization"

Name of Big Social Trend Implied by Article

• "Affordable Innovation"

Social Drive

• Consumer desire for high-quality, bold flavors and health-focused products at a value price point.

Learnings for Companies to Use in 2025

• Develop private label products that compete on quality, flavor innovation, and health benefits.

• Focus on delivering accessible premium experiences for cost-conscious consumers.

• Emphasize sustainability in packaging and product formulations to align with consumer values.

Strategy Recommendations for Companies to Follow in 2025

1. Enhance Global Appeal: Create private label products inspired by international flavors and culinary traditions.

2. Focus on Functional Benefits: Incorporate health-boosting ingredients like probiotics and plant-based proteins.

3. Replicate Premium Experiences: Offer at-home solutions like cold foams and artisanal snacks that replicate out-of-home indulgences.

4. Leverage Bold Marketing: Position private labels as innovative, high-quality alternatives through strong branding and storytelling.

Final Sentence

• The main trend is that "private label brands are transforming into premium, innovative alternatives that combine affordability, global flavors, and health-conscious benefits to meet evolving consumer demands."

Source: https://foodinstitute.com/focus/3-key-takeaways-from-the-2024-plma/