Key Points:
- Private label sales reached a new high of $271 billion last year, growing by 3.9% compared to 2023.
- Private label sales outpaced national brands, which only saw a 1% growth rate.
- All 10 food and non-edible departments tracked by Circana experienced year-over-year growth in private brand sales.
- Refrigerated items, general food, and beverages showed significant growth, with refrigerated items increasing by 7.5%.
- Major retailers like Walmart, Amazon, and Kroger have launched new private label brands to fuel sales growth.
- The trend of rising private brand sales has been consistent in recent years, with a nearly 5% increase in 2023.
- Store brand unit sales have risen by over 2% since 2021, while national brands have seen a decrease of nearly 7%.
Insights:
PLMA President Peggy Davies emphasized the quality, value, and innovation that store brands offer, noting their unbeatable appeal to customers.
Private label sales continue to demonstrate strong growth, showcasing the increasing preference for store brands among consumers.
Retailers are driving sales growth through the introduction of new private label lines, catering to evolving consumer preferences and demands.
The success of private label sales underscores the value proposition that store brands provide, positioning them as competitive alternatives to national brands.
With private label sales on the rise, retailers are leveraging the popularity and appeal of store brands to drive revenue and enhance customer loyalty.