Private Label Facts
Sales of private label in the U.S. have reached nearly $50 Billion and now command a 15% share of total CPG. Household penetration is climbing in many key center-store departments.
Retailers have secured private label share gains through increased trial and loyalty in select categories –
Share gains in over half of the top 100 CPG categories. Merchandising trends played a key part (private label support increased in well developed private label categories, branded support decreased in under-developed highly price-sensitive categories).
Private label is positioned to grow in both healthy and struggling economies.
Branded manufacturers believe that retailers have successfully “closed the gap” in product quality and innovation in many key categories.
Retailers are supporting Private Label for a number of reasons:
- Store brand loyalty leads to keeping customers and generating stronger loyalty.
- Margins on private label are higher.
- Retailer consolidation – As retailers become more powerful, private label is part of the equation that accelerates growth and, as scale increases, private label becomes a bigger part of the strategy.
- Retailers are looking to premium private label products to differentiate themselves.