Private label sales have reached a record high in the past year, totaling $271 billion, according to data from Circana cited by the Private Label Manufacturers Association. This marks a 3.9% increase compared to the previous year. The growth in private label sales has outpaced that of national brands, which only saw a 1% increase year over year, as reported by the PLMA.
All 10 food and non-edible departments tracked by Circana experienced year-over-year growth in private brand dollar sales. Categories such as refrigerated items, general food, and beverages showed significant growth, with refrigerated items increasing by 7.5% and the latter two categories seeing approximately 4% growth each.
Major retailers are driving this sales growth with the introduction of new store brand lines. Walmart launched a grocery private label line called bettergoods, Amazon debuted a discount brand called Amazon Saver, and Kroger introduced a produce brand called Field & Vine.
The trend of rising private label sales has been consistent in recent years. In 2023, private label sales reached $236 billion, marking a nearly 5% increase from the previous year. Over the past four years, annual private brand dollar sales have increased by nearly a quarter, while store brand unit sales have risen by more than 2% since 2021, compared to a nearly 7% decline in national brand sales.
PLMA President Peggy Davies emphasized the quality, value, and innovation that store brands provide, stating that store brands offer unbeatable value to customers. The growth in private label sales in 2024 reflects the continued preference for store brands and underscores their importance in the retail landscape.
