Corporate Profiles - 2023 - 49

STORE AND NATIONAL BRANDS
monthly sales percentage change
Store brands +11.3%
2022 TOTAL
6.3%
5.5%
7.5%
6.4%
9.1%
4.4%
9.9%
5.1%
National brands +6.1%
5.4%
6.0%
In 2022, store brands' annual dollar volume increased by $23.2
billion, setting a new record of $228.6 billion for sales in all US
retailing channels. National brands gained 6.1% ($56.6 billion)
in dollar sales, to $981.1 billion, bringing overall grocery industry
revenue to $1.21 trillion, up 7% (or $79.8 billion) over the
previous-year total of $1.13 trillion.
11.8% 12.0% 12.4% 12.0% 11.8% 13.1% 12.0% 14.0% 13.5%
5.9%
5.9%
5.9%
7.1%
6.9%
6.9%
6.6%
Source: IRI/PLMA
products and fresh food, according to the company.
A key event this year that may have propelled additional consumer
interest in value was the discontinuation of some Supplemental Nutrition
Assistance Program (SNAP) benefits related to COVID relief in March
2023. The elimination of the extra SNAP benefits nationwide reduced food
and beverage aid by $23 billion annually, according to Circana. As a result,
in the initial months after the benefit
reductions, SNAP households reduced their
monthly food and beverage spending, on
average, by about 35% of reduced benefits.
Adding complexity to how retailers are
navigating consumer interest in value is
how their definition of the term is evolving.
A study conducted in 2023 by FMI - The
Food Industry Association found today's
consumer perception of value is different
than the long-held definition of being measured
by the equation of higher quantity at
a lower price.
While shoppers said receiving good value
is a priority across all income and demographic
levels, younger shoppers are taking
a more holistic measurement that goes beyond
the traditional price-to-quantity ratio.
For example, 62% of millennials said they
prefer to minimize food waste by buying
only what they need.
Convenience and a pleasing shopping
experience also were identified as drivers
of value for younger shoppers. Forty-seven
percent of millennials said they are willing
to spend more to avoid shopping at multiple
stores, while 50% said they would spend
more to shop at more pleasant stores, compared
to just 16% of baby boomers.
Younger shoppers also are more willing to buy the best quality items
regardless of price. Fifty-two percent of millennials and 42% of Gen Zers
expressed that sentiment, compared to just 22% of baby boomers.
Among the 75% of shoppers expressing concern about rising food
prices, two strategies are emerging across all income levels - increased
deal seeking and more shoppers buying store brands. CP
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October 2023 / 49
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Corporate Profiles - 2023

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