Price-conscious consumers are economizing at the grocery store as inflation takes hold. Among US adults who are cutting back on groceries, 41% are buying fewer items from name brands, and 29% are spending less on alcohol and spirits.

CPG brands are struggling to compete with private labels: As the industry reaches a "breaking point," companies like Procter & Gamble are shifting tactics to appeal to price-conscious consumers.

Consumers are trading down to private label brands: That presents an opportunity for retailers such as BJ’s Wholesale Club to use their own brands to demonstrate value and build loyalty.

Inflation isn’t stopping consumers from buying premium brands: Levi’s and Birkenstocks are some of the companies leveraging their brand equity to raise prices and secure favorable retail partnerships.

Store brands have traditionally proliferated when inflation or a recession spurs consumers to spend more conservatively. But as store brands become more premium and fill specific customer needs, price is no longer the only driving factor.

Private label brands have taken on increasing importance in retailers’ arsenals on the heels of positive consumer sentiment. This report looks at how retailers can use store brands to bolster their product assortment and thus increase their margins.

Private labels are winning over consumers with good value for the money. Among US adults, 89.7% said they switched from a national label mainly because the store brand offered better value, and 47.9% said deals and/or membership rewards motivated the move. Meanwhile, 52.0% cited the private-label brand’s bigger selection of products.

A decade after the end of the Great Recession (and before the coronavirus roiled the economy), consumers have stuck with older means of economizing and added new ones to their shopping mix.