Private label products are gaining traction in the retail market, outpacing national brands in both sales growth and volume. According to data from Circana cited in a report by the Private Label Manufacturers Association (PLMA), private label sales increased by 4.4% in all outlets during the first half of the year, compared to just 1.1% growth for national brands.
The report highlights that store brands have reached all-time highs in market share, with 23.2% in units and 21.2% in dollars. Among the nine store brand sections tracked, refrigerated products, beverages, frozen items, and general food recorded the highest sales growth.
In terms of unit sales, store brands saw a 0.4% increase while national brands experienced a 0.6% decline during the same period. PLMA President Peggy Davies expressed excitement about the strong trajectory of store brands, attributing their success to the combination of quality, value, and innovation they offer to consumers.
The report also provides insights into how private brands are performing across different categories. Store brand food categories showed year-over-year increases in unit and dollar sales, while general merchandise store brands struggled with declines in sales.
Looking ahead, PLMA forecasts that store brand sales for 2025 will reach approximately $277 billion, representing a 2% increase from the previous year. This data underscores the growing popularity and success of private label products in the retail landscape.
Overall, the trend towards private label products demonstrates consumers’ recognition of the value and quality that store brands bring to the table. As retailers continue to innovate and expand their private label offerings, the competition between private labels and national brands is expected to intensify in the coming years.
