Packaging’s Critical Role in the Proliferation and Appeal of Private Label Products
By Beth Zipko, Executive Vice President of Source Wurx
It wasn’t that long ago when private label products were kept… well, private. In fact, in this not-so-distant past, “private label” wasn’t even a recognizable phrase. Off-brand products were generously referred to as “store brand”; ungenerously, they were dubbed “generics,” or even (yuck!) “knock-offs.”
Private label products were the lower-priced, no-frills items many of us looked over our shoulders before buying, then buried under the name brands in our shopping carts. We weren’t exactly embarrassed to buy them, but we weren’t exactly proud, either.
Why the mixed feelings? Largely because perception affected reality. Despite knowing full well we were purchasing a quality item often on-par with pricier name brands, the private label packaging – plain, utilitarian, even dull – silently screamed “less than.” For shoppers, each private label item could trigger an in-store inferiority complex.
Fast forward to today, and we’re in a much better place. The topline reasons driving private label’s promising proliferation are well known: name brand supply chain disruptions during COVID-19; stubborn, years-long inflation prompting consumers to look for lower-priced alternatives; upscale retailers elevating private labels by taking the store brand plunge.
But while certainly parts of the equation, these factors don’t add up to the sum of private label’s success. For that, we must look squarely at ground zero: the shopping cart.
Simply put, no one is burying their private label cereal and condiments under produce and poultry anymore. It’s right there atop the pile, loud and proud. Again, perception affects reality – this time in a positive way. It’s a microcosm of a major point: no element of private label products has improved more rapidly and dramatically than packaging.
In an exceptionally condensed timeframe, private label product packaging has gone from eyeroll-inducing to eye-catching. Let’s explore the dynamics at play.
Leader of the Packaging: Private Label Shelf Appeal
Proving packaging’s influence in private label’s impressive gains is as simple as passing the eyeball test – with flying (and vibrant) colors.
Strolling through supermarkets, big box retailers and even dollar/discount stores, the case for packaging’s outsized role in private label’s growth curve becomes ever more evident. Gone is the era when store brand items were contained in bulky packaging with barebones labeling.
Private label products once stood out on store shelves in a detrimental way: by being the lonely black-and-white, plain-text downer amid a sea of vividly colored products. Thank goodness those not-so-good old days are over. Today’s private label products are as creatively packaged as their branded big brothers. Sleek designs, creatively shaped multicolor labels, dazzling dispensers, high-resolution imagery. Sorry, Mr. Toucan, the private label “fruited loops” just earned your spot in the shopping cart.
Store brand packaging has other tricks up its sleeve labels, too. For example, multi-packing is on the rise, often emulating what competing brand names are doing but with exponential savings; think two-packs of antiseptic mouthwash, or four-packs of Greek yogurt. When buying in bulk is combined with a sense of aesthetic sophistication and quality interchangeability, private label products enjoy a competitive edge.
In whatever quantity, though, the common thread is the stark improvement of private label packaging designs and decorative attributes, which actively (and successfully) counteract tired terms like “generic” that evoke a less-than-special “me too” mindset.
For an example, let’s visit a decidedly not “me too” setting: Whole Foods. Nearly a decade ago, the company launched a private label called 365. Now called 365 Everyday Value®, it has not only endured but thrived. One look shows why. From mouth-watering food photography on cookies and canned veggies to eye-popping visuals and color schemes on everything from diapers to dairy products, the packages are anything but also-rans.
One reason is the color. As printing technology continues to advance, the availability and cost-effectiveness of expanded gamut printing has helped private label products evolve past the limitations of conventional CMYK printing. Many now incorporate colors like orange, green, and reflex blue to achieve upwards of 95% of the Pantone library, all without the complications and costs associated with using special inks.
The newfound affordability of such advanced printing techniques also allows private label products to more reliably keep up with the brand name Joneses. With package printing not only more attractive but more cost-efficient, private label products are able to update images and other on-package elements more frequently, allowing them to capitalize upon evolving trends and revolving, seasonal product versioning. With the latter – versioning – the widespread use of digital printing now enables limited-time-only foodstuffs and other products that can substantially bolster sales. (For proof, look no further than the pumpkin spice craze.)
Here, it’s worth noting that while the technology for flashier packaging exists, private label products sometimes prosper with understated elegance; for example, earthy tones and minimalist designs for organic or all-natural products. The larger point is that private label products now have a vastly expanded set of tools in their toolshed and, like name brand products, can wield them both strategically and nimbly. Here, the packaging capabilities are flexibly keeping apace with the product expansions themselves; for instance, as recently as a decade ago, how many of us thought we’d be seeing private label fire-roasted tomatoes? As the products become less generic and more specialized, so must their packaging.
The types of inks and coatings can differentiate a package just as much as its color, and private label products are showcasing this in spades. Soft touch and other tactile notes, spot varnish for matte/gloss effects and even holographs now permeate store shelves – including the shelves with store brand products.
Of course, it’s not all about printing. Private label package design also has seen a renaissance. One example is the “translucence trend” revealing more of the product with less packaging material. Elements like transparent substrates, windows, and clear pressure-sensitive labels simultaneously suggest product pride and, via smart materials reduction, environmental stewardship.
In fact, many private label retailers and brands are leading the charge for improved sustainability. Examples include commitments from Costco and Sam’s Club to transition dairy milk into fully recyclable high-density polyethylene (HDPE); and Aldi, which has plans to transition its frozen vegetable bags to fully recyclable substrates. Even products seldom associated with the sustainable packaging push are getting into the mix. For instance, Costco is switching its Kirkland olive oil from single-use plastic multi packs to more sustainable EnduraGrip® paperboard.
To finish up, let’s talk finishing touches. Foil stamping, embossing, customization-enabling variable printing. Storytelling and recipes, unique couponing options and QR codes for enhanced consumer participation. All of these and more are bringing the types of elevated consumer experiences and even “store brand loyalty” that places private label products on par with name brands – from second fiddle to first-rate.
As private label products proliferate and mature, packaging is following suit to further uplift them. The marriage of quality products and clever functional and aesthetic designs means the days of store brand inferiority complexes are gone for good.
This article was originally featured in Packaging Technology Today