Young adults prefer big brands to private label

According to a new global report from Canadean Consumer, young adults are more likely to buy branded products than private labels. Young adults aged 16-35 are far more likely to buy branded products than private labels. 26.8% of branded products are consumed by young adults while this age group only accounts for 22.6% of the private label share.

According to Canadean analyst Kirsty Nolan, young adults are more likely to focus on branded products owing to their lack of experience in grocery shopping. This consumer group has only recently fled the nest and has had to take on the responsibility of primary grocery shopping. This means a lack of familiarity with private labels and, in turn, low confidence in the products.

"Moving forward, manufacturers and retailers need to overcome young adults' reluctance to eat private label food by emphasising quality as well as value for money," she said.

On average, young adults under-consume private labels by 6.9% compared to their share of the population: 16-35-year-olds account for 29.5% of the population, but only eat 22.6% of the private label produce. These statistics illustrate the huge gap in the market that private label retailers are missing with current products and strategies. Older consumers remain key age group for private label. However, there are still opportunities to exploit. Across the globe, Canadean data shows that almost half of private label groceries are eaten by over-45s, even though they only account for approximately a third of the population.

According to Nolan, "Consumers aged 45 and over often have more time to compare the price and take a moment to consider the quality presented in both private label and branded products, as well as being more experienced buyers."

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