New Zealand supermarket chains report that more shoppers are opting for own-brand products in their trolleys amid ongoing cost-of-living challenges for households.
Foodstuffs and Woolworths New Zealand have seen consistent sales growth in their private-label products over the past five years, attributing the trend to shoppers seeking greater value in their weekly grocery purchases.
According to Foodstuffs, demand for its Pams range has “risen consistently in sales value and volume.”
The company said its Pams products now “sit comfortably alongside name brands”, with many customers “mixing and matching” based on budget and preferences.
Growth was also strongest in everyday essentials like frozen meat and vegetables, pantry staples such as pasta and canned tomatoes, baking ingredients, and chilled dairy items including cheese and butter.
Foodstuffs said shopping habits shifted markedly during the Covid-19 pandemic, as supply disruptions and tighter household budgets led more customers to try home-brand alternatives—many of whom have stuck with them since.
Meanwhile, Woolworths New Zealand reported similar trends in its own-brand range, launching about 500 new private-label products annually to meet rising demand.
Cheese stood out as a top category, with strong sales growth for Woolworths’ Everyday cheddar in 1 kg blocks. Customers also favoured speciality options like brie, gouda, and haloumi.
Woolworths also noted rising demand for its own-brand fresh meat and vegetables, ready-cut fruit pots, nappies, and Christmas hams.
It said slashing prices doesn’t mean cutting quality, with its own-brand items leveraging reduced marketing expenses and stronger purchasing clout.
Looking ahead, Foodstuffs said value will stay “front of mind” for households, though its meaning varies by family.
Woolworths anticipates ongoing demand for affordable and convenient options.