Dive Brief:
- Private label sales achieved a new high last year, hitting $271 billion, according to Circana data cited by the Private Label Manufacturers Association.
- Sales increased 3.9% compared to 2023, per the report.
- Private label sales growth outpaced that of national brands, which grew 1% year over year.
Dive Insight:
Private Label Manufacturers Association said all 10 food and nonedible departments that Circana tracks recorded year-over-year private brand dollar growth.
Refrigerated items, general food and beverages saw some of the highest growth, the report noted. Refrigerated increased 7.5%, while the latter two categories both saw growth of approximately 4%, according to Circana’s data.
Major retailers are fueling sales growth with new store brand launches. Last year, Walmart introduced a grocery private label line called Bettergoods, Amazon debuted a discount brand called Amazon Saver and Kroger launched a produce brand, Field & Vine.
The sales growth in 2024 continues the trend of rising private brand sales in recent years. In 2023, private label sales achieved $236 billion, a nearly 5% increase from the prior year.
Over the past four years, annual private brand dollar sales rose nearly a quarter, the report noted.
Since 2021, store brand unit sales have risen by more than 2%, while national brands have fallen by nearly 7%. The sales growth in 2024 is a testament to the value store brands offer customers, the report noted.
“The quality, value and innovation that store brands provide can’t be beat,” Private Label Manufacturers Association President Peggy Davies said in a statement.