Amcor, a leading global packaging company, recently conducted research which revealed that private label products have become a consistent fixture in consumers’ households. The study, based on feedback from over 3,000 grocery shoppers across various European countries, delved into how these shoppers perceive, consider, and purchase private label products.
The findings showed that a staggering 70% of European consumers regularly purchase private label products when grocery shopping. What’s more, 50% of consumers who initially opted for private labels due to their competitive pricing have continued doing so as a result of their satisfaction with the superior quality of these products.
The research shed light on the key drivers behind the consumer preference for private labels. Notably, 85% of respondents listed “Price” as the primary reason, while 48% mentioned the influence of “Promotions” in their decision-making process. Furthermore, the quality of private label products emerged as a critical factor in purchasing decisions. When defining quality, consumers placed significant importance on “Better taste,” “Local production,” and “Cleaner ingredients.”
Madalina Mitru, the strategic marketing & value chain manager at Amcor, emphasized the significance of quality alongside pricing in consumers’ buying journey. She stated, “While the research confirms that the price of private-label items impacts grocery shoppers’ purchasing decisions in the current economic climate, quality is still a crucial factor influencing consumers’ buying journey.” Moreover, over half of European consumers (51%) expressed that they perceived no discernible difference in the quality of private-label products compared to branded ones, thus strengthening the positioning of private-label brands for future success.
The research also brought to light evolving consumer attitudes towards retailers and brands, particularly regarding their commitment to sustainability. According to the study, 42% of European consumers believed that retailers had demonstrated considerable effort in promoting local production as a sustainable practice. Additionally, one-third of consumers (34%) acknowledged improvements in “Food waste reduction,” “Less excessive packaging,” and “More sustainable packaging.”
However, the research indicated that more efforts were still needed to address certain sustainability issues. A third of grocery shoppers (35%) felt that excessive packaging should be reduced, and 33% desired the incorporation of more sustainable packaging. Respondents highlighted several key packaging-related claims that would positively influence their purchase decisions for private label products, including “Recyclable packaging,” “Less plastic,” “Less packaging,” and “Paper packaging.”
Intriguingly, 28% of grocery shoppers stated that the presence of more sustainable packaging played a role in their decision to buy private label products. This demonstrates that sustainable packaging is one of the top concerns for consumers and a crucial factor for retailers to consider. These findings overshadowed the influence of “Promotions” (48%) and “Cleaner ingredients” (40%) on purchase decisions.
Mitru stressed the growing trend of eco-conscious grocery shopping and the increasing consumer expectation for products to demonstrate sustainability improvements. She suggested that retailers and brands should adopt more sustainable packaging solutions to retain customers and showcase their commitment to driving circularity and reducing their carbon footprint.
In conclusion, Amcor’s research highlights the rising popularity of private label products among European consumers. It emphasizes the significance of pricing and quality as key factors in purchasing decisions, while also shedding light on the consumer demand for more sustainable packaging. Retailers and brands can leverage these insights by focusing on eco-friendly packaging and showcasing their dedication to sustainability, thus solidifying their position in the evolving market.
