While shoppers are still feeling the lingering effects of inflation at the grocery checkout, they still plan to ring in the holidays with their loved ones. These shoppers are also on a constant hunt for value — from early shopping deals to promotions and discounts across retailers — with more and more looking to private label brands to help ease the pain of high grocery prices.
According to the 2024 Holiday Private Brand Intelligence Report from Daymon, six out of 10 shoppers describe their current financial position as either struggling or making ends meet, with 92% of shoppers saying that they expect inflation to affect their 2024 holiday spending.
As reported in September’s Private Brand Intelligence Report from Daymon, 87% of shoppers say they buy private brands during every typical grocery trip. Virtually the same number of consumers plan to purchase private brands this holiday season, per the new holiday report.
Beyond Value: Quality, Convenience, and Innovation
“The reasons go beyond value, with today’s private brands meeting different needs and desires for shoppers, such as wellness attributes and seasonal flavors,” says Jean Ryan, vice president of strategic advisory at Daymon, which powers private brand development for Advantage Solutions. “But come holiday season, more shoppers are seeking out creative ways to find value without sacrificing quality or flavor. Increasingly, private brands fit the bill with these shoppers.”
Meal ingredients are the top grocery category that shoppers consider purchasing in private brands this holiday season, with 75% of shoppers turning to private brands — up 16% over last year. This is followed by dairy (71%), household products like paper goods and cleaning supplies (64%), frozen foods (48%), and packaged baked goods (44%).
More shoppers are also open to including private brands as ingredients in their holiday recipes. With 80% of consumers not loyal to any one brand, there’s clear opportunity to cater to these changing habits through innovation, digital promotion, and smart search strategy.
“Value is no longer solely about price, it is about getting more for each dollar spent,” Ryan says. “Retailers have a chance to use their private brands to make the holidays more affordable, convenient and special, creating a strong partner for the holiday season and beyond.”
Flavor Trends, Shopper Segments, and Scented Savings
The Holiday Private Brand Intelligence Report also spotlighted a big change in seasonal flavors: hot cocoa has overtaken pumpkin spice as the #1 holiday favorite, followed closely by cinnamon. Generational preferences are strong:
- Gen Z: Maple and marshmallow/s’mores
- Millennials: Caramel and apple
- Boomers: Least interested in seasonal flavors
Retailers can tailor private brand innovation to these preferences across categories and formats — snacks, beverages, baking ingredients, and even personal care items.
Holiday scents, too, are a key value-accessible category. Struggling and budget-conscious shoppers are most likely to buy seasonal fragrances, candles, and hand soaps, with favorites like cinnamon, peppermint, and pumpkin evoking festive feelings affordably.
“For many shoppers, scents are a budget-friendly way to bring the holiday spirit home,” Ryan adds.
Three Private Brand Opportunities for Retailers
Daymon advises retailers to position themselves as one-stop destinations for both essentials and surprises:
- Simplify MealtimeOffer ready-to-eat meals, sides, and convenient solutions for time-strapped holiday hosts.
- Drive Enhanced ValueStand out with seasonal imports, unique flavors, and innovative packaging that signal more for less.
- Support Saving MindsetsStock quality basics at good prices to secure loyalty from today’s cautious shopper.
Download and read the full report here.
