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Hispanic shoppers are buying more private label brands

A recent study reports that private label brands account for 31% of household grocery expenses among Hispanics, averaging $172 monthly.

Household income doesn't affect the amount spent, as Hispanics earning $50,000+ spend the most, at $195. Offering multiple tiers of private brand products, from basic to premium, can effectively appeal to Hispanics at all income levels.

The upside is notably the youngest shoppers (18 to 24) who spend more than any other age group, at $199. In addition, 42% of Hispanics 25 to 39 have increased spending on private brands.

The most purchased private brands among Hispanics:

  • Dairy products: 54%
  • Paper products: 41%
  • Carbonated beverages or bottled water: 35%
  • Cleaning supplies: 34%
  • Cereals and breakfast products: 34%

Ways to encourage Hispanics to buy private brands:

  • Quality and healthy ingredients: 64%
  • Price lower than the alternative national brand: 63%
  • Discount coupons and sales: 59%
  • Same ingredients and characteristics of alternative national brand: 49%
  • The store would donate a percentage of sales to the community: 48%

Sources:
progressivegrocer.com
Food Marketing Institute (FMI) Private Brands Group

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