So far in 2009, Mintel GNPD has seen nearly 1,800 new U.S. private-label foods appear on [image-nocss] retail store shelves: 27% of all food products introduced this year. In 2005, private-label foods comprised only 13% of new food product launches. Mintel GNPD said that amid "rampant" private-label food product development, manufacturers should stay current with the latest food trends.
"Not only have private-label introductions increased, but product innovation is reaching unprecedented highs," said Krista Faron, senior analyst at Mintel. "Retailers no longer only launch 'me-too' products to compete against major national brands. Instead, private-label lines are hotbeds of creativity, driving markets and establishing themselves as trend leaders."
As more than half of Americans try to spend less at restaurants, Mintel GNPD sees private-label retailers creating premium in-home meals that boast restaurant quality and fresh ingredients. Supervalu's Culinary Circle, for example, features an upscale Pork Carnitas Enchilada Casserole, while Wal-Mart claims fresh-baked taste in minutes with Sam's Choice Thin Crust Pepperoni and Canadian Bacon Pizza.
Portable, high-quality lunches are another hot area of private-label development, said Faron. People want to save money by lunching at the office, and new private-label foods like Safeway's Rice Noodle Soup Bowl (retailing for $1.55) make desk-dining easy and enjoyable.
Convenience remains a driver for private-label prepared foods, but Mintel GNPD sees health and nutrition increasingly influencing product development. Lucerne Foods gives shoppers convenience, nutrition and private-label pricing with its Eating Right brand. Products span the store, including kids' Whole Wheat Mini Ravioli with fiber and protein, plant sterol-fortified Apple Cinnamon Granola and Light Ice Cream Cups containing probiotics.
"Private-label manufacturers realize 'value' means more than 'low price' to consumers, so they're wisely creating new products that deliver on some of today's most exciting food trends," Faron said.
Mintel is a leading global supplier of consumer, product and media intelligence. It provides insight into key worldwide trends, offering data that directly impacts client success.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.