Private label sales have reached a new high, totaling $271 billion last year, according to data from Circana cited by the Private Label Manufacturers Association. This represents a 3.9% increase compared to the previous year. In comparison, national brand sales only grew by 1% over the same period.

All 10 food and non-food departments tracked by Circana experienced year-over-year growth in private brand sales. Among the categories showing the highest growth were refrigerated items, general food, and beverages. Refrigerated items saw a 7.5% increase, while general food and beverages both experienced approximately 4% growth according to Circana’s data.

Major retailers are driving this sales growth through the introduction of new store brand offerings. For example, Walmart launched a grocery private label line called bettergoods, Amazon introduced a discount brand called Amazon Saver, and Kroger debuted a produce brand named Field & Vine.

The upward trend in 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, in contrast to a nearly 7% decline in national brand sales.

PLMA President Peggy Davies emphasized the value that store brands offer consumers, stating that “The quality, value, and innovation that store brands provide can’t be beat.”

This growth in private label sales reflects a shift in consumer preferences towards store brands, driven by factors such as competitive pricing, quality, and innovation. Retailers are responding to this demand by expanding their private label offerings and investing in new product lines to cater to changing consumer needs.

The continued success of private label sales underscores the importance of brand strategy and innovation in the retail sector. Retailers that are able to adapt to changing consumer preferences and differentiate their store brands from national brands stand to benefit from the growing popularity of private label products.

In conclusion, the rise in private label sales signals a shift in consumer behavior towards store brands, driven by factors such as affordability, quality, and innovation. Retailers are capitalizing on this trend by expanding their private label offerings and launching new product lines to meet evolving consumer needs. As the competition between private label and national brands intensifies, retailers must focus on brand strategy and innovation to stay ahead in the dynamic retail landscape.