Young Consumers Are Reshaping U.S. Dairy Private Labels
Spins identified a change in consumer behaviour behind the sharp rise of organic cream cheese in private-label ranges. Higher-income consumers are now the most active adopters of store brands, according to the retail-insights company. Their stated appeal is not limited to lower prices: these products are increasingly viewed as offering quality and nutritional value.
Alex Overstreet, Spins’s retail insights manager, said higher-income shoppers were looking for features such as added protein and no added sugar. Overstreet said many national brands still did not provide those attributes consistently on store shelves.
Consumer expectations have also expanded across the private-label sector. Norine Rudnicki, Spins’s insights manager for brokers, said avoiding corn syrup, artificial sweeteners and sugar alcohols was no longer a distinguishing feature. She described those characteristics as basic expectations for store brands, while adding that demand for protein remained strong in most categories.
Age is another factor in the data. Millennials and Generation Z account for about 17% of the households surveyed, but together they generate a disproportionately large share of private-label growth. Munz, cited by Spins, said attracting younger shoppers was necessary to compete in the category. The company said communication aimed at them should emphasise innovation, convenience and premium experiences rather than centre on low prices.
The dairy industry has specific opportunities in this shift. Spins lists yoghurt, energy drinks and frozen pizza among the categories with high engagement from younger consumers but relatively low private-label penetration. Rudnicki said these less-developed areas, rather than categories where store brands are already strong, were the spaces identified for the next phase of growth. Spins’s assessment described private label as a long-term growth vehicle rather than solely a value proposition, with dairy among the sectors involved in the change.
