Today, FMI, the food industry association, released the 2021 Power of Private Brands report, which finds 91% of food retailers and manufacturers surveyed plan to significantly or moderately increase their investment in private brands in the next two years.

“During the pandemic, many more consumers gave private brands a try, and this has resulted in new acceptance among today’s shoppers,” said Doug Baker, vice president of industry relations for FMI. “At the same time, the rise of ecommerce and home cooking offer the food industry an opportunity to further grow their private brands programs.”

Investments for the Future

The 2021 Power of Private Brands finds food retailers and suppliers have a renewed commitment to their private brand programs and are making strategic investments, including:

• 52% boosting private brands eCommerce strategies.
• 77% changing or rethinking private brand assortments and supplier strategies in response to the pandemic.
• 70% making longer-term commitments to supplier arrangements and engaging more closely with existing suppliers.
• 58% adding innovative new private brands.

A Path Forward for Private Brands

Baker noted, “Consumer demand for private brands in 2021 is expected to represent 95- 100% of 2020 demand, according to IRI. The 2021 Power of Private Brands identifies key steps for the industry to turn private brands opportunities into realities.”

The upcoming FMI Private Brands Summit offers attendees insights into consumer trends and trading partner face-to-face business meetings.