The majority of consumers now see branded food and drink products as luxuries, according to new research.
An online survey compared consumer reactions of own-label goods to branded equivalents and found that 56% of the 600 respondents saw branded products as a luxury when trying to keep grocery costs down.
The study, by Buckingham Research, also found that 34% agreed that branded products tasted better than supermarket own-label goods, although almost half (49%) said that branded goods offered less value for money than own-label items.
“Brands are likely to feel the pinch in this recession as shoppers focus increasingly on price and value for money,” said research director Tim Sheard.
“But the fact that a third of shoppers believe that branded products taste better shows that there is still promise. The key for brands will be identifying what makes customers tick and ensuring that the messages they send out resonate with shoppers.”