Private Label Brands Attract Gen Z Shoppers
NEW YORK — Private label brands are gaining the attention of Generation Z shoppers.
More than half of Gen Z grocery shoppers "always/frequently" choose a place to shop because of its store brands, according to a new report from the Private Label Manufacturers Association (PLMA) entitled "Gen Z Loves Store Brands: America's Youngest Consumers Speak Out on Grocery Shopping, Stores and Brands."
Approximately 67% of Gen Z say they are "extremely/very" aware of store brands and 64% say they buy store brands "always/frequently." Additionally, more than half (56%) are "extremely likely/likely" to experiment with store brands to find "best value," and 51% say they "always/frequently" choose a place to shop due to its store brands.
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Other findings reveal:
- 53% of Gen Z say "valuable" describes store brands "precisely/very much."
- 52% of Gen Z say "reliable" describes store brands "precisely/very much."
- 50% of Gen Z say "variety" describes store brands "precisely/very much."
"Gen Z store brand purchase frequency is most strongly driven by a perception that store brands are 'reliable.' Reliability perception is a stronger store brand purchase predictor than any other measure, including household income and monthly grocery spending," said Sara Williamson, assistant professor of marketing at SUNY Old Westbury, who analyzed the survey results and presented her findings at PLMA's 2023 U.S. Private Label Trade Show in Chicago last month.
The impact of store brand reliability is a solid indicator that the manufacturer-retailer relationship is more important than ever, she said.
"To succeed with Gen Z, retailers must establish a foundation of store brand suppliers who meet their customers' quality expectations," she added.
The full report is available here.
The Private Label Manufacturers Association is a nonprofit trade organization founded in 1979 to promote the store brands industry. With executive offices in New York and International Council offices in Amsterdam, the association represents more than 4,500 member companies worldwide.