Private Label
Private Label Sales Reach Record Highs in First Half
The momentum in private label sales continued to surge in the first half of 2024, according to recent data from Circana and released by the Private Label Manufacturers Association (PLMA).
As of June 16, 2024, private label unit market share reached 22.9%, while dollar market share climbed to 20.4%, both hitting all-time highs, PLMA reported.
“These record highs in market shares illustrate the ‘Store Brands Phenomenon’ sweeping the retail industry across all channels, departments, and categories,” said PLMA President Peggy Davies.
The increase in market shares was driven by the superior performance of store brands compared to national brands at checkout. Store brand dollar sales rose by 2.3%, while national brands saw a 1.1% increase. In terms of unit sales, store brands grew by 2.5%, whereas national brands declined by 0.8%.
Total store brand sales for the six-month period amounted to $121 billion, compared to $472 billion for national brands.
Nine out of the ten categories tracked by Circana for PLMA reported dollar sales gains for the 52 weeks ending June 16. The Beauty category led with a 10% increase, followed by Liquor (+8.8%), General Food (+6.9%), Home Care (+6.8%), Pet Care (+5.8%), Beverages (+4.3%), Frozen (+2.9%), General Merchandise (+2.2%), and Home (+1.7%). The refrigerated category experienced a slight decline of 0.7%.
PLMA predicts that if this sales trajectory continues, total store brand revenue for 2024 will surpass a quarter trillion dollars, setting a new annual sales record.
The impressive performance of private labels in the first half of the year will be a key topic during the Store Brands State of the Industry Webinar Q3 on Friday, July 26. In collaboration with PLMA, MaryEllen Lynch, principal with Circana, will provide an in-depth analysis of the sustained growth in the private label sector.