Shoppers have been switching away from branded sauces, cereals and drinks, and opting for supermarkets’ own-brand equivalents to save money at the till, research suggests.
Sales of own-label products have risen 47% over the last year, according to market research firm Kantar. The trend comes against a backdrop of sharply rising food prices.
In January, grocery prices were up a record 16.7% compared to a year ago, Kantar said.
Shoppers Turn to Own Label Lines
Households are facing an increase of £788 to their annual grocery bills “if they don’t change their behaviour to cut costs”, said Kantar analyst Fraser McKevitt.
People have been turning to more own-label products, and away from brands, “with sales of these [own-label] lines growing consistently over the past nine months,” he said.
Many supermarkets have also been using price-matching with rivals and savings through loyalty schemes to encourage people to shop with them, Mr McKevitt added.
However, consumer spending on promotions, such as two-for-one, is at a record low, accounting for just 23% of spending in the four week period studied by the market research firm.
Kantar said supermarkets were focusing on keeping prices low on everyday goods instead.
Food prices have been rising sharply as energy, labour and agriculture costs rise, Mr McKevitt told the BBC.
While the grocery sector is “incredibly competitive”, he said food “is not something we can choose whether we buy or not”.
People have been cutting back on streaming services – “that’s something people can choose to cut back on, but if you need to feed yourself, feed your family, you’re going to have to go to the shops”, Mr McKevitt added.