T. Ozbun
Research expert covering food retail and all food topics for Italy and Brazil
U.S. private label food market - statistics & facts
Lately, private labels have experienced significant growth, especially in the food and beverage departments. General food sales have increased by 10 percent, while beverages have seen a growth rate close to nine percent. During periods of economic challenges, like the recent inflationary period, shoppers have increasingly viewed private label goods as a cost-effective alternative to name brands, offering affordability without compromising on quality. This has enabled these products to maintain their sustained market growth.
Retail landscape
While sales of private label food and beverage have been growing for some time, first the pandemic and then inflation have caused a marked increase in sales. As of 2023, sales had reached 152 billion U.S. dollars, up 42 percent from 2019. The share of private label in food and beverage sales has grown just slightly during this period indicating that rather than consumers abandoning branded products to any great extent, private label products have kept pace but not escaped price inflation. Refrigerated foods account for not only the largest edible private label category, but the largest private label segment overall, reaching a 33 percent share of sales.Consumer behavior
The most common reasons consumers gave for buying more private label brands were price and good value. Somewhat unexpectedly, quality and taste were also mentioned by many consumers as factors influencing their decision to purchase private label goods. Furthermore, interestingly, a survey revealed that among consumers, a higher proportion of high-income respondents compared to those with lower incomes opted for private labels as a means to save money, despite these products being known for their characteristic as cost-effective alternatives to national brands. While name brands still maintain a higher level of popularity, preferences differ based on the age of shoppers, with younger individuals tending to display slightly stronger inclination towards store brands compared to their older counterparts.
