Michael Taylor, COO of Retail Services at Advantage Solutions, oversees Daymon, a global Private Brand agency. He notes that consumers are more educated and savvy than ever, seeking premium products at affordable price points, driven by inflation and the perception of steep retail prices. The blurring of traditional tiering strategies has become common, with premium attributes now available across tiers, particularly in mainstream and lifestyle tier items.
To meet consumer demand for higher quality offerings on stricter budgets, retailers and brands are leveraging private brands as avenues of innovation to deliver overall value and accessibility. By investing in bold, dynamic assortments and better product design, retailers can strategically meet shopper expectations and attract a changing consumer base. Younger generations are more diverse and have distinct cultural influences, driving interest in global cuisine and premium culinary experiences.
Consumers are pursuing unique and culturally inspired flavors, such as the global heat trend which offers different levels of heat experiences. Bold flavor combinations like “swicy” (sweet and spicy) are gaining popularity, inspiring consumers to try new ingredients and pairings. Retailers and brands that offer bold, dynamic flavor assortments can excite shoppers with newness, drive seasonality, and encourage loyalty through exclusivity and premium offerings.
Consumers expect products to have better design, trends, functionality, and shareability that align with their lifestyles and heightened expectations. Products with unique and striking packaging that depart from the norm create contrast on shelves and attract consumers. Inclusion of popular colors, lifestyle diet needs, and premium functionalities, such as ready-to-cook meals or premium cookware at affordable prices, can enhance the product experience and meet consumer demands.
As inflation stabilizes, the retail market is poised to innovate and meet consumer appeal for premium attributes while still delivering overall value. Retailers are optimizing assortments to cater to premium consumer demands across all product touchpoints, from food service to exclusive private brands and across categories. The trend of premiumization and democratizing premium attributes in products and store experiences is likely to continue, as retailers grow strategically to satisfy consumer expectations.
