Brand or private label? The banner counts

With high inflation lingering, many Boomers face financial difficulties. This is especially true for single households, and particularly women, who often have to live on very small pensions. Of all households that struggle financially, 34% are Boomers or older, compared to financially comfortable households where this groups makes up only 27%.

Struggling households

0%

Comfortable households

0%

⬤ Boomers and older

Hence, one might assume that Boomers favor private labels (PL) over brands; however, their respective value share of PL is about 5% lower compared to Gen Z, who grew up with private labels. For example, the PL value share in Germany reaches 34% for Boomers and 40% for Gen Z. The biggest disparity, 10%, is found in Poland, where Boomers account for 18% of PL value share, compared to 28% for Gen Z. The only exception is Italy, where Boomers actually have the highest private label share of all generations.

Discounters are also slightly less favored by Boomers: in most European countries, especially in Western Europe, Boomers show a below-average value share at this retail channel. The exception is the Netherlands, with its high density of stores, where Boomers have a slightly higher share at discounters: 16% versus an average of 15% for the total population. Even in Denmark, where discounters are very popular, the value share for Boomers is 45%, compared to 53% for the total population.

However, the notion that Boomers are chronic brand lovers is overplayed, as their preference for private labels is growing.

not willing to pay extra for brands

will spend less (not more)

of Boomers pay attention to price (over quality)

buy what they need (rather than what they like)

prefer private labels over brands

The only real bias toward valuing brands over “no-name” products is with the oldest age groups – the so-called Silent Generation born before 1944 – and mainly in Eastern Europe.

Aging shoppers appear less inclined to switch retailers without a good reason: 81% will shop again at their main retailer, with only 19% indicating they might not or will not. The biggest risk for them to “cheat” on their main retailer is when buying home and personal care products. Older generations prefer to stick to a “familiar environment,“ whereas Gen Z is more flexible: 56% will shop again at their main retailer, and 44% might not or will not.