Description

Future-proof your business with Mintel’s US Private Label Food and Drink Market Report. Inside the full report, you’ll be provided with consumer-led market intelligence that outlines the trends and behaviors affecting your industry, alongside data-driven recommendations that help you to benchmark and align your strategy with other private-label food and drink market professionals. Below, we’ve handpicked some key insights from the full report.

Our Report Provides Key Insights On

  • Private label food and drink sales and trends.
  • Market factors impacting private label food and drink’s growth potential.
  • Consumer attitudes and behaviors toward private label food and drink.
  • Top competitors and innovators in the private-label market.

Private Label Food and Drink – Market Overview

Private label’s share of total food and drink sales jumped in 2022, propelled by rising grocery prices. The long-term outlook is also positive, as a new generation of shoppers who are less brand-loyal emerge.

Private label market size: Total US multi-outlet sales of private label food and drink increased by 15.5% in 2022.

Private label market share: Private label’s share of total food and drink sales rose to 19.2%, increasing by nearly a full percentage point.

US Private Label Industry – What’s Next?

Positive experiences with private label are key to loyalty

More than eight in 10 shoppers agree that a good experience with one store brand makes them more likely to try another. So brands will need to focus on delivering a positive experience for the consumer in order to encourage sustained growth.

Sustainability important to younger shoppers

30% of shoppers aged 18-34 would purchase more store-brand products that featured sustainable sourcing. Private-label products are becoming an increasingly important platform for retailers looking to enhance their own sustainability profiles.

Budget-minded home cooking

Over half of consumers are now cooking at home more frequently than they were a year ago. Naturally, a key opportunity for growth lies in products that simplifies or enhances home cooking for the consumer.

Purchase our full report to reveal our expert’s analysis and comprehensive list of innovation opportunities and discover how your business can connect with consumers and grow during times of financial uncertainty.

Expert Analysis from a Specialist in the Food Retail Sector

This report, written by John Owen, a leading food and retail analyst, delivers in-depth commentary and analysis to highlight current trends in the US private label industry and add expert context to the numbers.

Inflation has given private label food and drink a big short-term boost as shoppers have looked for ways to stretch their grocery budgets. To maintain growth in the long run, however, retailers will need to continue evolving store brands beyond savings alone. Private label offers a unique opportunity for retailers to meet shopper needs and build brand equity.

John Owen, Associate Director, Food and RetailJohn Owen
Associate Director – Food and Retail

 

Table of Contents

  1. Overview

    • What you need to know
      • This Report looks at the following areas
        • Definition
          • Market context
          • Executive Summary

              • Top takeaways
                • Consumer trends
                  • Openness to private label on the rise across categories
                    • Figure 1: Brand preference in select categories – Prefer to buy store brand or no preference, 2021-23
                  • Budgeting behaviors overall on the rise
                    • Figure 2: Changes in select value-related shopping behaviors, 2023
                  • Lower prices may drive trial, but positive experiences are key to loyalty
                    • Figure 3: Attitudes toward private label food and drink, 2023
                  • Market predictions
                    • A return to steady growth
                      • Figure 4: Total US sales and fan chart forecast of market, at current prices, 2017-27
                      • Figure 5: Category outlook for private label food and drink, 2023-28
                    • Opportunities
                      • An opportunity to facilitate budget-minded home cooking
                        • Figure 6: Changes in value-related shopping behaviors – Home cooking and store-brand purchasing, by brand preference groups, 2023
                      • Sustainability and sourcing important to younger shoppers
                        • Figure 7: Interest in private label concepts, by age, 2023
                      • Sampling could convert name brand loyalists
                        • Figure 8: Attitudes toward private label food and drink – Sampling and habit, by brand preference groups, 2023
                    • Market Size and Forecast

                      • Inflation boosts private label sales and market share
                        • Staple categories have big short-term impact on private label growth
                          • Private label poised to continue steady growth
                            • Figure 9: Total US sales and fan chart forecast of market, at current prices, 2017-27
                            • Figure 10: Total US multi-outlet sales and forecast of private-label food and drink, at current prices, 2017-27
                            • Figure 11: Private label share of total US multi-outlet sales of private label food and drink, 2017-21
                        • Segment Performance

                          • Food accounts for bulk of private label food and drink sales
                            • Figure 12: Total US multi-outlet sales and forecast of private-label food and drink, by segment, at current prices, 2017-22
                            • Figure 13: Share of total US multi-outlet private-label food and drink, by segment, 2017-22
                          • Refrigerated staple categories drive private label food share gains
                            • Figure 14: Share of total US multi-outlet private-label food, by sub-segment, 2017-22
                          • Milk and bottled water are key private label beverage categories
                            • Figure 15: Share of total US multi-outlet private-label drink, by sub-segment, 2017-22
                          • Other channels outpace supermarkets in private label sales and share
                            • Figure 16: Share total US multi-outlet sales of private label food and drink, by channel, 2017-22
                            • Figure 17: Total US multi-outlet sales of private-label food and drink, by channel, at current prices, 2017-22
                        • Market Drivers

                          • Inflation helps make private label more attractive
                            • Figure 18: Consumer Price Index change from previous period, 2020-23
                          • Food and drink prices rise across the board
                            • Figure 19: Changes in Consumer Price Indexes for food, 2020-23
                          • Consumers feel the squeeze of inflation
                            • Figure 20: Assessment of personal financial situation, 2021-23
                        • Competitive Strategies and Market Opportunities

                          • Ethical and sustainability claims on the rise
                            • Figure 21: Incidence of select on-pack ethical/sustainability claims on private label food and drink launches, 2017-22
                            • Figure 22: Incidence of select ethical/sustainability packaging claims on food and drink launches, private label vs name brands, 2022
                            • Figure 23: Select food launches making Ethical/sustainability claims, 2023
                          • Amid rising prices, Kroger consolidates value-tier lines
                            • Figure 24: Kroger Smart Way brand, select products, 2023
                          • Making more of home meal prep
                            • Figure 25: Select value-added private label products, 2023
                        • The Private Label Food and Drink Consumer – Fast Facts

                          • Openness to private label ticks up across categories
                            • Beyond private label, budgeting behaviors overall on the rise
                              • Positive experiences with private label are key to loyalty
                                • An opportunity to facilitate budget-minded home cooking
                                  • Sustainability and sourcing important to younger shoppers
                                    • Sampling could be key to converting name brand loyalists
                                    • Brand Preference by Category

                                      • Openness to private label on the rise across categories
                                        • Figure 26: Brand preference by category, 2023
                                      • Younger shoppers less tied to big CPG name brands
                                        • Figure 27: Brand preference by category – Prefer to buy store brand or no preference, by age, 2023
                                      • Openness to store brands across income levels supports tiered approach
                                        • Figure 28: Brand preference by category – Prefer to buy store brand or no preference, by household income, 2023
                                    • Food and Drink Choice Factors

                                      • Cost ranks high but isn’t the only selection factor
                                        • Figure 29: Food and drink choice factors, 2023
                                      • Name brand loyalists prioritize familiarity, taste and enjoyment
                                        • Figure 30: Food and drink choice factors, by brand preference groups, 2023
                                    • Changes in Value-related Shopping Behaviors

                                      • Purchasing private label, other value-driven shopping behaviors on the rise
                                        • Figure 31: Changes in value-related shopping behaviors, 2023
                                      • Increased home cooking frequency creates opportunity for store brands
                                        • Figure 32: Changes in value-related shopping behaviors, by brand preference groups, 2023
                                    • Interest in Private Label Concepts

                                      • Equal quality at a lower price holds broad appeal
                                        • Figure 33: Interest in private label concepts, 2023
                                      • Premium quality could help convert name brand loyalists
                                        • Figure 34: Interest in private label concepts, by brand preference groups, 2023
                                      • Sustainability and sourcing important to younger shoppers
                                        • Figure 35: Interest in private label concepts, by age, 2023
                                    • Attitudes toward Private Label Food and Drink

                                      • Concern about rising prices sets stage for private label gains
                                        • One good experience with store brands can lead another
                                          • Figure 36: Attitudes toward private label food and drink, 2023
                                        • Private label sampling could help turn name brand loyalists into believers
                                          • Figure 37: Attitudes toward private label food and drink, by brand preference groups, 2023
                                      • Appendix – Data Sources and Abbreviations

                                        • Data sources
                                          • Sales data
                                            • Forecast
                                              • Consumer survey data
                                                • Abbreviations and terms
                                                  • Abbreviations
                                                  • Appendix – The Market

                                                      • Figure 38: Total US multi-outlet sales and forecast of private-label food and drink, at inflation-adjusted prices, 2017-27
                                                      • Figure 39: Total US multi-outlet sales and forecast of private-label food, at current prices, 2017-27
                                                      • Figure 40: Total US multi-outlet sales and forecast of private-label food, at inflation-adjusted prices, 2017-27
                                                      • Figure 41: Total US multi-outlet sales and forecast of private-label drink, at current prices, 2017-27
                                                      • Figure 42: Total US multi-outlet sales and forecast of private-label drink, at inflation-adjusted prices, 2017-27
                                                      • Figure 43: Total US multi-outlet and private-label drink sales, and private-label share, by category, at current prices, 2017-22

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