Why do Millennials love private label groceries so much?

According to Cadent Consulting Group’s 2018 report, “The Branding of Private Label,” store brand dollar share in grocery is expected to hit a record high of 18.4 percent in 2018 and reach 25 percent over the next decade. One big reason: Millennials.

While the typical shopping cart is 25 percent private label, Millennials’ baskets are 32 percent — and almost half of these consumers plan to purchase somewhat or much more private label in the coming year. With no memory of white-label generics and little loyalty to national brands, “Millennials are driving private label growth,” says Cadent principal Karen Strauss. “They think of it as just another brand,” not a cheap substitute for the real thing. In addition, Millennials are much more likely than, say, Baby Boomers to shop in non-traditional outlets such as natural grocers, deep discounters, club stores and online where store brand sales are expanding.