Estimated read time: 5-6 minutes
NEW YORK — Consumers constantly grapple with grocery shopping decisions, particularly when it comes to balancing quality and cost. Store-brand products, often referred to as generics or private-label brands, have emerged as a popular alternative to name-brands, promising significant savings. But are these savings worth the potential quality trade-off?
What are store-brand products?
Store-brand products are those sold under the retailer's own label, bypassing the established brand names. These items typically mirror their name-brand counterparts in terms of packaging and functionality but at a lower price point.
These products typically look the same but have different packaging that is generally associated with a particular retailer, such as Kirkland Signature for Costco or Great Value for Walmart. They are often placed near the branded products but often on lower shelves to entice you to purchase the higher-priced brand-name products.
Many shoppers used to consider generic products an inferior quality, but retailers have made significant investments over the years to improve the taste, quality and appearance of the products they now market under their own private-label brands. In fact, you can now find organic products, gluten-free items and other niche foods under stores' brands that provide consumers with significant savings.
How are store-brand products different?
Beyond the obvious price difference, store-brand products can differ in a few key ways. Packaging and ingredients are the two other major differences you may notice as a consumer.
Store-brand packaging is usually simpler and less flashy compared to name brands, reducing marketing costs passed on to consumers. You will not generally see private-label products advertised outside the store.
While the core ingredients are often similar, there might be slight variations in specific components or sourcing depending on the retailer's contract with the manufacturer. Some of these differences may be noticeable to the consumer, while others make the product essentially a twin of the name-brand item.
Who makes store-brand products?
Contrary to popular belief, private-label products often come from the same factories that produce name-brands. Manufacturers may simply adjust the recipe slightly or use different packaging to fulfill a contract with a particular retailer. In other cases, retailers may also work with lesser-known manufacturers to produce store-brand products, but they remain held to the same safety and quality standards as any other food on the market.
Those minimal differences in the final product mean that you can often choose to pay more for a name-brand or choose the store-brand for a lower price. The quality remains the same as the name-brand, as these food products aren't coming from unknown factories in countries with lower processing standards. They are sourced specifically by the chains, and the retailers stand behind them.
Do store-brand products taste the same as name-brand food?
Blind taste tests conducted by consumer advocacy groups have repeatedly shown that there is little to no discernible difference in taste or quality between store-brand and name-brand products for many everyday grocery items.
Pasta and rice are a great first choice to swap to private label. Flour, sugar, milk and frozen vegetables and fruits are other relatively unprocessed foods that are virtually identical to their more expensive cousins.
Many canned goods, such as vegetables and beans, are also very similar to the name-brand versions. Where products have more flavors, such as some soups and even diced tomatoes, the name-brand quality can have improved taste, depending on your individual preferences.
Similarly, you may prefer name-brand canned tuna over store-brand, as the private-label tuna tends to have less desirable portions of tuna and has a noticeable difference in its appearance and taste. On the other hand, private-label snacks tend to taste and look almost identical to their name-brand counterparts, whether you purchase pretzels or cupcakes.
The same holds true for cereal, where some name-brand cereals may contain unique flavor profiles or fortified ingredients not readily available in private-label brands. You cannot compare premium ice cream to store-brand ice cream, but that doesn't mean store-brand ice cream can't compare to many other brands out there. This is where personal preference plays a major role.
In the baking aisle, products such as spices and baking soda are similar, as well. Expert home cooks may notice a difference in items they cook or bake that use private-label products, but most people will not notice that their chocolate cake didn't rise quite as much when they used store-brand baking powder instead of the name brand.
Extensive research suggests that the quality of store-brand products has significantly improved over the years. The U.S. Food and Drug Administration enforces strict safety standards for all food products, regardless of brand. Additionally, many retailers have invested heavily in developing high-quality store-brand lines to compete effectively with established names.
How much money can you save by buying store-brand products?
According to a study by the Private Label Manufacturers Association, consumers can save an average of 25% to 30% on their grocery bills by choosing store-brand options over name brands. For a family of four, this could amount to hundreds of dollars in savings each year. With continued rising food costs, these savings can make a significant impact on household budgets.
Choosing between name-brand and store-brand products is a personal decision that depends on individual preferences and priorities. While name brands may offer familiarity and certain unique products, store brands provide excellent value for money and can help consumers save significantly on their grocery bills.
If you're looking to save money, start by swapping a few items for private-label products. As you learn which name-brand items you prefer and which store-brand products perform just as well, you can reduce the impact of inflation on your wallet.
