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 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.
“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, with 71% of shoppers; household products such as paper goods and cleaning supplies, at 64% of shoppers; frozen foods, 48%; and packaged baked goods, 44%.
Value-seeking behavior is changing how consumers approach their holiday shopping—for instance, more shoppers are open to including private brands as ingredients in their favorite holiday recipes. With 80% of consumers not loyal to any one brand, private brands have an opportunity to cater to these new habits. Brands can capitalize on this trend through innovation and new products, digital promotions or even optimized search.
“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.”
Holiday flavors and scents
The Holiday Private Brand Intelligence Report also spotlighted the flavor trends of the holiday season, where there has been a big change at the top. Perennial holiday flavor favorite pumpkin/pumpkin spice has been dethroned, with hot cocoa flavor taking its place, and cinnamon taking a surprising No. 2 spot.
For retailers exploring holiday flavors for their products, understanding the needs of your distinct shopper base (and their unique flavor preferences) is essential. Gen Zers, millennials and Gen Xers have the most affinity for seasonal flavors, whereas baby boomers are the least interested. And generational preferences are very specific — for Gen Zers, maple and marshmallow/s’mores are the hot flavors, while millennials lean toward caramel and apple flavors.
Retailers can reach these diverse shopping groups by targeting needs across touchpoints, from convenience to health and wellness — all while innovating with these growing flavors of interest. Private brands have an opportunity to build on this year’s top flavor trends with a lens to next holiday season, with permission from shoppers to continue innovating using this season’s trending favorites.
Increasingly, familiar holiday products are being transformed into flavors, blurring the line between comfort and newness, Ryan says. Hot cocoa and caramel apple are just two examples of this trend, spanning grocery aisles by expanding into new items and categories.
Holiday scents are also more likely to be purchased by shoppers who are financially struggling or making ends meet, according to the Daymon research. Three-quarters of these shoppers are more likely than others to purchase seasonally scented items like fragrances, candles or hand soaps in holiday themes like pumpkin, cinnamon, peppermint and others.
“For many shoppers, scents are a budget-friendly way to bring the holiday spirit home,” Ryan says.
Key takeaways for retailers
The guiding principle for retailers this holiday season, according to Daymon, is to be a one-stop shop for customers by driving value across the board. Here are three things to remember:
- Simplify Mealtime. Take something off shoppers’ plates by creating convenient solutions like ready-to-eat meals, sides and other time-saving products.
- Drive Enhanced Value. Create distinctive and unique products that drive interest and innovation. Think imports, unique flavors, or packaging, all while helping shoppers get more for less.
- Support Saving Mindsets. Ensure your portfolio has the basics at a good quality and price point. By being a valued partner during the holidays, retailers can capture long-term loyalty.
Download and read the full report here.
