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09/15/2022

Rising prices push consumers to purchase store-brand products

According to a survey by Reach 3 Insights, 80% of Americans say that rising prices have driven them to purchase more store-brand products.
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shopping inflation

As consumers reduce purchasing amid higher prices, two categories remain largely unaffected.

Shoppers are focusing on what they have to buy and reducing (or flat out stopping) purchasing in some categories, according to a survey by Reach 3 Insights. The two categories least impacted are baby and pet products — 80% who shop for these items are purchasing these categories as much or more as they were prior to inflation (compared to an average of 59% buying the same or more in other categories).

[Read More: Retail sales grow in July amid inflation]

In other survey findings, 80% of Americans say that rising prices have driven them to purchase more store-brand products, with 61% buying more store-branded pantry items and 58% buying more store-branded household products.

The study, conducted among 2,000 U.S. adults (age 18+), found that most consumers see little difference between branded products and private label ones. Sixty-five percent of respondents agreed that when apart from packaging and branding, most products are really the same anyway.

In other findings, nearly all Americans (91%) are being more thoughtful about what they buy due to rising prices. Even those making $100,000 or more are just as likely (89%) to be putting more thought into their purchases.

[Read More: Digital grocery sales spike due to inflation, rising COVID-19 cases]

On the other hand, consumers are purchasing fewer treats for themselves with beauty products (53% buying less), frozen appetizers (52% buying less), sweet snacks (51% buying less) and ice cream (50% buying less) being purchased less due to inflation.

Sacrifices are being made by about eight in ten (79%) shoppers as a result of inflation, according to the survey. For some, that’s simply foregoing some luxuries and more expensive brands, for others, sacrifices are the only way they can get by as they stretch their budget.

This story originally appeared on Chain Store Age

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