Learn what’s shaping perceptions around premium brands and private label, such as:
- Shifting Branding Views
- Convenience
- Social Media Influence
In the wake of historic inflationary costs and economic turmoil, consumers worldwide are reevaluating their food and beverage purchase behaviors. In fact, a report found that increased food costs have become consumers’ primary concern – ranking above gas, clothing and housing1. Among those concerned, 94% have changed their spending habits in response1, discovering ways of stretching their dollar without compromising on value, quality, or nutrition. Often sold at grocery or convenience stores for a lower cost than premium products, private label products may attract consumers concerned with affordability. Although 41% of shoppers say that they’ve purchased more private labels since 2020, with 30% citing higher grocery prices as the reason for doing so, price is not the only factor that drives a purchase2.
The perceived value of a product is just as important to shoppers, and this is where premium brands can really compete with private labels. Despite global shoppers looking to save money, they are also seeking products that are more innovative, more aligned with their social and ethical values, and of a higher perceived quality. By offering sought-after functional nutrition, such as higher protein and fiber, premium brands can deliver a product that justifies the higher price point. In fact, 60% of shoppers reported preferring the higher quality item over the cheaper alternative3. As a result, this competition encourages consumers to focus on factors other than price.
Discover what factors are driving the shift toward a focus on value:
Changing Views of Brand Name
When a consumer makes a purchase, the perception battle between premium and private label plays a crucial role. While premium products were historically viewed as more trustworthy and holding a higher value, recent innovations for private label products have been successful in evoking a sense of trustworthiness and nutrition-often for a lower cost. As a result, consumers no longer recognize private label as less appealing than a brand name product4.
Formulators for premium brands can keep up with private labels by innovating food and beverages with nutrient-dense, recognizable ingredients, like almonds, to establish a sense of higher perceived value. Whether it’s a non-dairy yogurt with granola and almond inclusions, or a decadent frozen custard with almond butter drizzle, food manufacturers can develop innovative, in-demand products that have an enhanced nutritional value and quality with almond ingredients.
Convenience
The global ready-to-eat meals market is expected to grow at a 10.98% compound annual growth rate, reaching $188 billion by 20305. This means that people are still seeking elevated and convenient experiences despite increasing global food prices. Whether it’s a “heat and eat” meal from a store, or a protein bar they can throw in a work bag, a range of private label to enhanced convenience offerings can bring the value of being easy to consume on the go – while still providing the necessary nutrition consumers seek.
Ideal for a trail mix or protein bar, almond ingredients, like almond butter and almond protein powder, can be used within premium convenience products to help shoppers maintain a busy lifestyle, without compromising on their nutrition goals. When using almond ingredients, formulators can infuse healthy fats, protein, and fiber to keep consumers full and fueled.
Social Media’s Influence
Whether it’s a recommendation from an influencer or a close friend, consumers across the world are evolving their purchase behaviors based on what they’re seeing online. With 71% of Gen Z and 58% of Millennial consumers noting that they view food and nutrition social media content6, and the global functional foods market expected to expand at an 8.5% annual rate by 20327, it’s evident that food consumption and interests of global consumers are being shaped by social media.
One of the top trends on social media involves plant-based products, with experts linking the rise of veganism to the growth of social media and influencers8. Seeing a third-party review of an almond crusted cauliflower dish or almond flour brownies, for example, could help influence a premium purchase, especially if value touted is related to health, nutrition, and sustainability.
As demands continue to shift and increased food prices remain, the influence of convenience, social media, and the ongoing assumptions around premium vs. private label becomes increasingly impactful on consumer purchases. By staying up to date with consumer demands, and providing increased overall value through functional nutrition, premium brands can compete alongside private label despite having a higher price point. Trustworthy, nutrient-dense, versatile and delicious, Blue Diamond’s almond ingredients help food formulators innovate – and reshape – the world of premium offerings by providing more value than ever to consumers.
Want to learn more about what’s shaping innovation? Check out our Q&A article featuring expertise from Laura Gerhard, Vice President at Blue Diamond Global Ingredients Division here. If you’re hungry for more insights on what to expect from convenient innovation, contact us or request a sample today.
References:
1 “Grocery shoppers redefine value amid inflationary pressures,” Food Business News. June 2023.
2 “Food retailers infiltrate new categories with private-label products,” SmartBrief. April 2023.
3 “More consumers are opting for quality over price, survey finds,” Consumer Affairs. 2023.
4 “How Private Label Merchandise Is Reshaping Retail,” Forbes. February 2023.
5 “Ready-To-Eat Meals Market Overview,” Market Research. April 2023.
6 “IFIC assesses social media’s impact on food choices,” Food Business News. 2023.
7 “Functional Foods Market Set to Surpass a Valuation of US$ 678.3 Billion by 2023,” Market.US. 2023.
8 “Veganism and Social Media,” ADK Insights. 2022.
