What’s New and What’s Next for Private Label?

At the recent Private Label Trade Show, the private label industry continued its growth, now valued at $230 billion in the U.S., making up almost 30% of all new dollar sales in retail. The growth is especially notable as private label brands are expanding across various product categories and meeting the evolving demands of consumers. Some of the top trends and innovations spotted at the show include:

1. Better-for-You Products: Health-conscious consumers are driving the demand for functional foods such as items that support immunity, gut health, energy, and specific dietary needs like gluten-free, keto, and plant-based. For example, Earth Ranch introduced infused nuts with added protein and reduced fat, while BetterBody Foods showcased overnight oats infused with chia, flax, and hemp seeds.
2. Alternative Sweeteners: Products like honey, maple syrup, and other sugar substitutes are becoming increasingly popular. Maple syrup, in particular, is being used beyond traditional applications like pancakes, with consumers incorporating it into salad dressings and other recipes.
3. Beauty Products: Private-label beauty products are experiencing significant growth. Consumers are looking for plant-based, free-from, and functional ingredients. Private-label beauty sales grew 5% to reach $3.6 billion for the 52 weeks ending June 18.
4. Smart Sourcing: Transparency and traceability in sourcing are becoming crucial for consumers. Brands like Garland Food and Paramount Roasters emphasized their farm-to-table sourcing practices, ensuring consumers know where their food comes from and who produces it.
5. Pet Food Trends: The humanization of pets is driving the demand for functional, environmentally friendly pet foods. Companies like Phelps Pet Products are creating pet foods with superfood ingredients such as sweet potato, chia, and blueberries, often using ingredients that might otherwise go to waste.

Overall, private-label products are diversifying and increasingly focused on consumer needs for health-conscious options, sustainability, and transparency, making them a strong competitor in the retail market.