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Description

Description

Covered in this report

For the purposes of this report, Mintel has used the following definitions: According to the Private Label Manufacturers Association, “private label” products encompass all merchandise sold under a retail store’s private label. That label can be the store’s own name or a name created exclusively by that store.

"Private label sales continue to grow, even in the wake of a largely positive economy that sees consumer confidence remaining high. Where value used to be the primary driver of private label food and drink choice, consumers are sticking with those brands and have even expanded their private label purchase patterns further, raising expectations of quality from brands."

William Roberts, Jr, Senior Food & Drink Analyst

This report will look at the following areas:

  • Private label purchase trending upward
  • Other retail channels upping their private label program game
  • Elevated expectations are the new normal

What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • Top takeaways
          • Market overview
            • Figure 1: Total US sales and fan chart forecast of private label food and drink, at current prices, 2014-24
          • Key trends
            • Private label purchase trending upward
              • Figure 2: Store brand purchase behavior, by age, November 2019
            • Other retail channels upping their private label program game
              • Figure 3: Retailers for private label purchase, November 2019
            • Elevated expectations are the new normal
              • Figure 4: Consumer opinions of store brands versus name brands, any agree, November 2019
            • Issues
              • Private label penetration limited in key categories
                • Figure 5: Store brand usage, by category, by age, November 2019
              • Opportunities
                • Reach up-and-coming shoppers with innovation
                  • Figure 6: Store brand on consumer perception of the retailer, any agree, by age, November 2019
                • Private label support to matters of corporate responsibility
                  • Figure 7: Private label food/drink purchase drivers, by age, November 2019
                • Innovation that leads to exclusivity, loyalty
                  • Figure 8: Opportunities for private label, any agree, November 2019
              • The Market – What You Need to Know

                • Steady growth for private label food and drinks
                  • Other retailers step up their game
                    • Private label increases share of food
                      • Fresh PL offerings on the store perimeter outpace brand
                      • Market Size and Forecast

                        • Private label sales grow, principally among nontraditional grocery channels
                          • Figure 9: Total US sales and fan chart forecast of private label food and drink, at current prices, 2014-24
                          • Figure 10: Total US sales and forecast of private label food and drink, at current prices, 2014-24
                      • Market Breakdown

                        • Private label showing particular strength among food
                          • Figure 11: Sales of private label food and drink, by segment, 2014-24
                          • Figure 12: Sales of private label food and drink, by segment, with percentage year-over-year change, 2014-24
                        • Supermarkets continue to lose market share to other channels
                          • Figure 13: Total US multi-outlet sales of private label food and drink, by channel, at current prices, 2014-19
                          • Figure 14: Total US multi-outlet sales of private label food and drink, by channel, at current prices, with percentage year-over-year change, 2014-19
                      • Market Perspective

                        • Private label growth outperforms total food and drink
                          • Figure 15: US total multi-outlet and private label food and drink sales, and private label share, at current prices, 2014-19
                      • Market Factors

                        • Increased DPI points to potential for premium private label
                          • Figure 16: Disposable personal income change from previous period, January 2017-October 2019
                        • Consumer confidence appears unsteady
                          • Figure 17: Consumer Sentiment Index, January 2007-October 2019
                        • Healthy aspirations drive product innovation
                          • Figure 18: Health attributes sought, May 2018
                      • Key Players – What You Need to Know

                        • Other channels come on strong
                          • Innovation moves beyond value
                          • What’s Happening?

                            • Strategy shift drives PL growth
                              • Figure 19: US sales of private label food and drink through other multi-outlet channels, at current prices, 2014-19
                            • Despite growth, private label drinks struggle to compete with name brands
                              • Figure 20: US multi-outlet total and private label drink sales, and private label share of total, at current prices, 2014-19
                              • Figure 21: Non-alcoholic beverage launches, branded versus private label, May 2014-April 2019
                          • What’s Next?

                            • Value but with no sacrifice
                              • Private label is poised to tap into Elevated Convenience
                                • Claims/attributes may resonate more than brand (whether store or otherwise)
                                • The Consumer – What You Need to Know

                                  • Purchase of standard store brands largely on par with low-priced store brands
                                    • Perimeter a stronghold for private label
                                      • PL purchase moving beyond grocery retailers
                                        • Premium PL will appeal to younger consumers
                                          • Quality is no longer the point of difference for brands
                                            • Product development can be a destination driver
                                              • Premium innovation
                                                • Healthy, natural products cast the widest net
                                                • Brand Type Purchase Habits

                                                  • Products positioned for value lead store brands, but only slightly
                                                    • Figure 22: Brand purchase habits, November 2019
                                                  • Younger adults reach for premium and natural store brand products
                                                    • Figure 23: Brand purchase habits, by age, November 2019
                                                  • Private label popular across income levels
                                                    • Figure 24: Store brand purchase habits, by household income, November 2019
                                                • Brand Preferences by Category

                                                  • Premium positioning can help boost non-fresh PL categories
                                                    • Figure 25: Brand preferences by category, November 2019
                                                  • Younger consumer interest in store brands in center-store categories
                                                    • Figure 26: Store brand preferences by category, by age, November 2019
                                                • Purchase Drivers

                                                  • Purchase factors consistent whether for store or name brands
                                                    • Figure 27: Food/drink purchase drivers, private label versus overall, November 2019
                                                  • Store brands could take the lead on issues
                                                    • Figure 28: Private label food/drink purchase drivers, by age, November 2019
                                                  • Taste and cost factor strongly in store brand choices
                                                    • Figure 29: TURF Analysis – Store brand food priorities, November 2019
                                                • Retail Channels Shopped for Private Label Food and Drinks

                                                  • Mass merchandisers second only to supermarkets for store brand food/drinks
                                                    • Figure 30: Retailers for private label purchase, November 2019
                                                  • Younger shoppers ripe for online attention
                                                    • Figure 31: Retailers for private label purchase, by age, November 2019
                                                  • Lower-income consumers are drawn to dollar store food and drink
                                                    • Figure 32: Retailers for private label purchase, by household income, November 2019
                                                • Private Label Purchase Behaviors

                                                  • Private label as a destination
                                                    • Figure 33: Private label purchase behaviors, November 2019
                                                  • Price alone not compelling younger store brand consumers
                                                    • Figure 34: Private label purchase behaviors, by age, November 2019
                                                • Store Brands versus Name Brands

                                                  • Product caliber is no longer an issue
                                                    • Figure 35: Consumer opinions of store brands versus name brands, November 2019
                                                  • Consumer interest in local
                                                    • Figure 36: Consumer opinions of store brands versus name brands, any agree, by age, November 2019
                                                  • Quality is trumping value with consumers
                                                    • Figure 37: Consumer opinions of store brands versus name brands, any agree, by household income, November 2019
                                                • Store Brands on Retailer Perception

                                                  • Store brands to influence purchase destination
                                                    • Figure 38: Store brand on consumer perception of the retailer, November 2019
                                                  • Store brands drive consumers, particularly younger shoppers
                                                    • Figure 39: Store brand on consumer perception of the retailer, any agree, by age, November 2019
                                                  • Price prompts purchase, loyalty demands quality
                                                    • Figure 40: Purchasing store brand food/drinks – CHAID – Tree output, November 2019
                                                  • Specialty is synonymous with premium brands
                                                    • Figure 41: Purchasing store brand food/drinks – CHAID – Tree output, November 2019
                                                • Private Label Opportunities

                                                  • Consumers are hungry for more PL
                                                    • Figure 42: Opportunities for private label, November 2019
                                                • Private Label Food/Drink by Food/Drink Consumer Segmentation

                                                  • Food and drink consumer segmentation
                                                      • Figure 43: Food/drink consumer segmentation of private label food/drink, September 2019
                                                    • Healthy appeal to Quality Seekers
                                                      • Figure 44: Retailers for private label purchase, by food/drink consumer segmentation, November 2019
                                                    • Adventure Eaters seek natural
                                                      • Figure 45: Store brand purchase habits, by food/drink consumer segmentation, November 2019
                                                    • Value Chaser private label purchase driven by more than cost
                                                      • Figure 46: Private label food/drink purchase drivers, by food/drink consumer segmentation, November 2019
                                                    • Price could lure Time Savers, though at a cost
                                                      • Figure 47: Food/drink brand purchase habits, by food/drink consumer segmentation, November 2019
                                                  • Appendix – Data Sources and Abbreviations

                                                    • Data sources
                                                      • Sales data
                                                        • Fan chart forecast
                                                          • Consumer survey data
                                                            • Abbreviations and terms
                                                              • Abbreviations
                                                              • Appendix – The Market

                                                                  • Figure 48: Total US sales and forecast of private label food and drink, at inflation-adjusted prices, 2014-24
                                                                  • Figure 49: Total US multi-outlet retail sales of private label food and drink, by segment, at current prices, 2017 and 2019
                                                                  • Figure 50: Total US multi-outlet retail sales and forecast of private label food, at current prices, 2014-24
                                                                  • Figure 51: Total US multi-outlet retail sales and forecast of private label food, at inflation-adjusted prices, 2014-24
                                                                  • Figure 52: Total US multi-outlet retail sales and forecast of private label drink, at current prices, 2014-24
                                                                  • Figure 53: Total US multi-outlet retail sales and forecast of private label drink, at inflation-adjusted prices, 2014-24
                                                              • Appendix – Retail Channels

                                                                  • Figure 54: Total US multi-outlet sales of private label food and drink, by channel, at current prices, 2017 and 2019
                                                                  • Figure 55: US supermarket sales of private label food and drink, at current prices, 2014-19
                                                                  • Figure 56: US sales of private label food and drink through other multi-outlet channels, at current prices, 2014-19
                                                              • TURF Analysis – Private Label Food and Drink Trends – January 2020 Methodology

                                                                  • Figure 57: Table - TURF analysis – Store brand food priorities, November 2019
                                                              • CHAID Analysis – Private Label Food and Drink Trends – January 2020 – Methodology

                                                                  • Figure 58: Consumption by format – CHAID, November 2019

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