Private Label Growth Accelerates in the CPG Market

Private label growth continues to expand as consumers increasingly recognize store-brand products for their quality, value, and innovation. Retailers are capitalizing on this trend by enhancing their private-label offerings to attract diverse shoppers seeking cost-effective yet premium options.

Global Trends in Private Label

Private labels are gaining momentum worldwide, with strong performances in the European Union, Australia, and the United States. According to recent Circana reports, private-label sales are growing faster in the U.S. than in other global markets.

In Europe, private labels hold a 39% value share and a 47% unit share. Countries like Spain and France continue to lead in private-label success. Meanwhile, U.S. private labels hold a 22% value share and a 24% unit share, showing strong upward momentum in 2024.

U.S. Private Label Market Gains Strength

The U.S. private label market continues expanding, driven by affordability and increasing consumer trust. Even as inflation eases, shoppers remain focused on value without compromising product quality.

Retailers are investing in private-label products across various categories, including meat, bakery, candy, and snacks. Value-driven channels such as mass retailers, club stores, and e-commerce are fueling this growth.

Younger Shoppers Drive The Growth

Private-label adoption is rising across all demographics, with younger consumers embracing store-brand products at higher rates. These shoppers value affordability, innovative offerings, and premium alternatives that align with modern tastes and preferences.

Retailers are responding by enhancing their private labels through improved product quality, sustainable sourcing, and creative packaging to meet evolving consumer expectations.

The Future of Private Label Growth

As private label growth continues, retailers are expected to focus on innovation and differentiation to maintain momentum. With strong investments in product development, private labels are becoming a preferred choice for cost-conscious yet quality-focused consumers.

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