Research
With wind in its sails, US private label charts its path to growth
Private-label grocery brands are gaining traction in the US, now representing 19% of sales. With a focus on quality and value, market share could grow to 30% by 2033.
Private-label grocery brands are gaining traction in the US grocery market, currently representing 19% of sales. Compared to branded products, the private-label price discount can range from 25% to 60% for key products. Despite this differential, growth in private label has been modest: Market share increased from 17% in 2014 to 19% in 2023, hindered by quality perceptions, a fragmented retail landscape, diseconomies of scale, and strong brand loyalty.
However, economic pressures, market dynamics, and strategic industry shifts are creating a favorable environment for the meaningful expansion of private label in the US. Consumers facing financial strain are increasingly turning to private-label options, as evidenced by rising sales and traffic to discount grocers. Retailer consolidation and the growing influence of major brands are also reshaping the market, potentially leading to more – and better-quality – private-label offerings.
Improving private-label supply is key to future growth. Retailers are launching new premium brands such as Amazon Saver and Walmart’s bettergoods; domestic suppliers are investing in production; and international producers are increasing supply via exports and, in some cases, by expanding production into the US market.
Assuming a continued focus on quality and value, private-label market share in the US grocery market could hit 30% by 2033. This expansion may be regional, however, with regional players adapting to local trends, such as using specific suppliers. Either way, the US market appears poised for a substantial increase in acceptance of and demand for private label, mirroring European trends.
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