ST. PETERSBURG, FL — While the number of new product introductions has fallen across the board during the pandemic, national CPG brand launches are plummeting much faster than launches from private brands.
Private brands introduced 34% fewer products in 2020 and 54% fewer products in 2021, whereas new national CPG brands dropped substantially more — down 46% and 65% respectively — compared to 2019.
Private brand retailers focused on several categories for new product growth in 2021, according to data from shopper intelligence consultant Cataline’s Buyer Intelligence Database.
One of these categories includes cookies. It experienced a 66% decline in new product introductions for private brands vs a 57% decrease for national brands in 2020 vs. 2019, but in 2021, new product rollouts for private brands shot up by 60% while national brands declined by 22%. Other notable categories where private brands were outpacing national ones include ready-to-eat cereal and dry cat food.
As private brands introduce more new products during a time where consumers are concerned about inflation, they are reinforcing quality and value in key categories while the price differential with some national brands is shrinking. Phyllis Johnson, senior director of private brand development at Catalina, said it’s a callback to the early days of pandemic shopping behavior.
“Overall, retailers are seeking to engage shoppers who may once again be turning to private brands as they did during the early days of the pandemic when name brand shortages prompted trial,” Johnson said. “I predict this could be a second chance for those retailers to effectively demonstrate the value of private brands and convert shoppers to loyal private brand buyers.”
Catalina also noted some of the private brand categories that have seen the most growth since the pandemic began including baking ingredients, which are up 115%.
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