The insight: Private label penetration is on the rise, but there are a few categories that shoppers are reluctant to trade down in—namely baby care, pet care, and beauty, according to data from Kroger’s 84.51°.

• Just 21% of consumers are willing to switch to a cheaper baby care label, compared with 62% for paper products, 59% for shelf-stable goods, and 52% for household cleaning products.
• 7 in 10 shoppers prefer to stick to a specific pet food brand, and only 30% are open to buying cheaper beauty brands.

Why it matters: The data shows that while shoppers are on the whole looking for savings, there are some products and brands that they refuse to compromise on. That’s good news for pet retailers like Chewy and Petco, as well as consumer packaged goods companies like Kimberly-Clark (which owns Huggies) and Procter & Gamble (which owns Pampers).

• As the CFO of P&G, Andre Schulten, put it, the “cost of failure” for items like diapers is too high for many to consider lower-cost alternatives, keeping consumers locked in to name brands.
• Similarly, the pet humanization trend is driving shoppers to spend more on their furry companions than ever before, which includes springing for premium brands of pet food and other categories.

The big takeaway: Shoppers may be less likely to trade down in certain categories, but that doesn’t mean that their purchasing habits in those areas haven’t been affected by higher prices.

• For instance, lower-income households are driving an increase in private label pet care purchases, while sales of discretionary categories like treats and toys are under pressure as pet parents prioritize the essentials.
• Likewise, lower-cost brands like e.l.f. Beauty are gaining share as shoppers look for cheaper alternatives for premium products.