According to new findings from the Private Label Manufacturers Association (PLMA), the food and beverage industry saw a boost in private-label growth in the US during the first half of 2024. Consumer behaviour advisor Circana compiled data revealing that own-label brands, including food, drinks, and other FMCG products, achieved record high unit and dollar market share in the first six months of the year.
In this period, private-label unit market share reached 22.9%, with dollar market share at 20.4%. Own-label dollar sales, encompassing food, drinks, and other FMCG products, reached $121bn, marking a 2.3% increase year-on-year. In contrast, national brand sales experienced slower growth at 1.1%, reaching $472bn. Private-label unit sales also demonstrated growth of 2.5%, while national brands saw a decline of 0.8%.
PLMA president Peggy Davies stated, “These record highs in market shares illustrate the ‘store brands phenomenon’ that’s sweeping the retail industry across all channels, departments, and categories.”
The report also highlighted that in the 52 weeks leading up to June 16, own-brand general food sales surged by 6.9% to $50.8bn. Store-branded alcoholic beverage sales experienced the highest growth at 8.8% to $50.8m, while store-branded beverage sales increased by 4.3% compared to the same period in 2023, reaching $14bn.
Private-label sales in the frozen category increased by 2.9%, whereas own-brand refrigerated sales saw a slight 0.7% decrease. The PLMA predicted that if sales continue to grow at the same rate, own brand revenues for FMCG products in 2024 could surpass $250bn.
Private-label’s rise has impacted the performance of major food companies globally. French dairy giant Lactalis reported “weak” profits for 2023, citing increasing pressure on volumes from private-label products. While the group’s reported turnover rose by 4.3% to €29.5bn ($31.4bn), consolidated net profit remained weak, despite a modest increase on the previous year.
Emmanuel Besnier, chairman of Lactalis, noted that 2023 saw a shift in consumer purchasing behaviour, leading to a decline in sales volumes and a growing preference for private labels over national brands. This trend was particularly noticeable in Europe.
