They say good things come out of tough situations, and this would certainly hold true for the private labeling industry, one of the few industries to show considerable profit in spite of the recession. But currently, even in a more stable economy, private label products continue to give sizeable market branded products some stiff competition.
In 2009, the Roper Center for Public Opinion Research, CT, reported more than 60 percent of shoppers say they “frequently” purchase private label brands. This was up 40 percent from the previous three years. According to the study, 80 percent of consumers perceive private label brands to be comparable in quality, if not better, to national brands. While these statistics apply to all private label brands, dietary supplements account for a major segment of the private label industry—specifically, 29.7 percent of unit sales in drug chains and 20.5 percent in supermarkets, according to the 2008 Private Label Yearbook, PLMA.
The business of private labeling has been touted to be recession proof or, more accurate, recession resistant. At the height of the recession, AC Nielsen reported a 12-percent increase in the sale of privately labeled products between the summer of 2008 and 2009. While this is true, the future for private labeling was looking bright even before recession hit. In fact, since 2003, the private labeling industry has grown by 60 percent. The recession has simply escalated its growth.