Baking&Snack - June 2012 - 18

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Private label food use up, satisfaction down
Although the number of US consumers choosing private label food products continues to increase, they are losing their enthusiasm for these value-oriented options, according to The NPD Group, Chicago, IL. Private label’s share of household servings increased from 18% in 2000 to 27% in 2011, NPD’s food and beverage market research report found. But the satisfaction with these foods meeting consumers’ needs has dropped to 24% in 2012 from 32% in 2009. In recent years, increased consumption of private label foods and beverages may have been more a matter of necessity due to the lagging economy and higher grocery prices than deliberate intention. In 2009, 34% of adults said they intended to purchase more private label foods vs. one year ago, but that percentage has declined to less than one-quarter of adults in 2012, according to the study, titled “The Evolution of Private Label — Does Brand Name Really Matter?” However, NPD said this does not mean private label products have failed to make progress over the past decade. The study showed two-thirds of adults said store-brand quality is much better today than it was five years ago. Consumers’ store brand name awareness and identification remain quite low, with 25% of shoppers unable to identify the top-selling store brand as a store brand, the study said. Although more private label finished products are being served, consumers’ loyalty to private label is still strongest in categories mostly used as ingredients such as flour and butter, which top the list of private label-loyal categories. Categories such as frozen dinners and entrées, yogurt, and carbonated soft drinks, where there is a stronger loyalty to name brands, are likely to display the brand to the user. “The question is, if food inflation declines and at the same time the economy improves, will consumers return to the name brands they know and trust?” said Darren Seifer, NPD food and beverage industry analyst and author of the study. “This could become a reality if retailers don’t respond to declining satisfaction and if name brand manufacturers continue to aggressively build loyalty. On the flip side, name brands need to be aware that private label usage continues to increase and the quality perception is improving.”

Consumers confident in food safety, labeling
Consumer confidence in US food safety remained steady and high according to the International Food Council’s 2012 “Consumer Perceptions of Food Technology” survey. Despite the increase in media coverage of food technology and food processing, consumer perception has remained steady with most satisfied with information currently available on food labels, labeling policy for biotechnology foods and the benefits offered through plant and animal biotechnology. When broken down, survey responses showed that more than two-thirds of consumers say they are somewhat or very confident in the safety of the US food supply. Only 24% said they would like to see additional information on food labels. Most of these respondents said they would prefer more information regarding nutrition or ingredients. Concerning biotechnology, nearly three in four consumers have read or heard at least “a little” about food biotechnology, according to the survey. This year saw an increase in the percentage of consumers who viewed plant biotechnology as favorable, from 32% in 2010 to 38% this year. The survey found that 66% of respondents were in favor of the Food and Drug Administration’s current labeling policy on biotechnology. The study engaged 750 US adults through an online survey. Cogent Research, an independent research firm based in Cambridge, MA, conducted the study.

Healthy eating provided the platform for nearly Biscuits with chocolate content accounted for

of global biscuits launches during 2011.

of the global sweet biscuit market, down from

five years ago.
Innova Market Insights

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/ Baking & Snack / June 2012

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Baking&Snack - June 2012

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