Sales for private label food and beverage brands are declining as consumers generally favor—and pay for—national brands, according to a recent blog post by Elizabeth Timmis of Stella Rising. That said, 95 percent of consumers shop private label and this industry is more significant than people likely realize. To persuade consumers to purchase more, retailers are rushing to offer what is seen as lacking in the category: freshness, health, free-from foods, and better taste. But as private label brands use better ingredients, maintaining a lower cost may be an issue. Should that be the case, consumers could continue opting for national brands, being that the price differential is so minor.

Stella Rising infographics generally cover industries being shaken up by changing consumer preferences; the private label food category is no different. Timmis points out that an overall positive economic outlook, paired with a preference for healthy and free-from foods, has experts indicating a period of decline for the category. Yet retailers are starting to move quickly, adapting their offerings to new consumer tastes. Within the last three months, Target, Kroger, and Albertsons have all revamped their private label programs. Whether by slashing artificial flavors and high-fructose corn syrup, or by offering plant-based frozen items and new organic products, these retailers are responding to consumers as, with their wallets, they demand change, health, and innovation.

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