As global tariffs increase, including U.S. tariffs on other countries, everyday items like food are becoming more expensive due to the rising costs of ingredients and packaging. To save money, many consumers are turning to private label or store-brand products, which are often more than 20% cheaper than name-brand alternatives. A NielsenIQ report shows global sales of private labels grew by 4.3% last year. Consumers are no longer viewing these products as low-quality, and major retailers like Target, Kroger, Sam’s Club, and Costco are expanding their private brand offerings. Some stores are even working with famous chefs to create appealing, high-quality items. However, these private labels are not immune to tariffs and may become more expensive as well. Despite this, many buyers say they can barely tell the difference between brand names and generic versions, making private labels a popular choice in a time of economic pressure.
Vocabulary:
• tariff (noun): a tax on goods coming from other countries
• ingredient (noun): something used to make food or other products
• packaging (noun): the materials used to wrap or contain a product
• brand (noun): a specific name or company that makes products
• generic (adj): not a specific brand; a basic or store version
• survey (noun): a set of questions asked to many people
• trend (noun): a general direction of change or development
• consumer (noun): someone who buys goods or services
• stigma (noun): a negative belief or label attached to something
• alternative (noun): another choice or option
• partnership (noun): a business relationship between people or groups
• expand (verb): to grow or increase in size or number
• label (noun): a name or brand printed on a product
• confusion (noun): a state of not being clear or certain
Source: TODAY