Private labels are increasing in popularity. Retailers have expanded private label offerings and consumers have responded by buying them. In fact, many private labels are starting to offer premium and organic foods and are taking over mainstream products. So as the snack market continues to grow, private label snacks sales are growing right alongside them. Here’s the pull of private snack labels.
What Are Private Label Snacks?
Retailers have power
Now retailers can make decisions about what goes on the shelves and what doesn’t. They know what their customers are likely to buy and what they’re not, so why waste energy and shelf space on products that won’t sell? Instead, they’re going to stock more of the options that their customers are actually yearning for.
More growth is possible
Discount stores, like Aldi and Lidl, have recently announced expansions, which will grow the private label surge even more. And other grocery stores will try to keep up by improving the quality of their private label offerings and diversifying those offerings. Ten years ago, there was a distinct gap in the quality between private label and brand name products, but today that gap is nearly nonexistent. Several companies have even found success internationally.
Premium private label brands have appeal
Several innovative retailers have found ways to make their private label brands superior to the name brands, and those superior products are selling and growing. Many supermarket and convenience store chains believe that a consistent and strong private label system will set their stores apart from the rest and earn customers’ loyalty, further increasing their popularity.
Private labels enter new categories
More than just milk and canned goods, many private label companies have developed products in health and beauty, detergents, diapers, and beverages. And consumers are responding with acceptance, often choosing a private label product ahead of the higher-priced name brand. There’s no longer such a stigma attached to buying private labels, and they’re providing some serious competition for brand-name companies.
Though the strength of private label sales general varies with economic conditions—it usually goes up when the economy is in a downturn—their market share still continues to grow. And a lot of this based on better profit margins. Without the emphasis on brand management and marketing, private label products yield higher profits, making them more appealing for retailers and manufacturers.
Looking to improve your snack sales?
Want your product packaged by a leading Private Label wholesaler who can help you create the perfect packaging that will grab your customer’s attention? We offer you a nitrogen-flushed package for long shelf life, code dating and tracing capabilities, metal check and other inspections for food safety, along with artwork and packaging development to give you exactly what you want. We do small production runs as well as large runs. Minimums are not an issue – we adapt our production runs to meet your needs. 1-800-333-6393 us with any questions.or call