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Private Label Products Gaining Market Share

07/18/2023

According to a release by the Private Label Manufacturers Association (PLMA), the sales value of store brands exceeded national brands during the first half of 2023.  Commissioned by PLMA, the market research group, Circana, determined that private label sales grew by 8.2 percent during the first half of 2023 compared to national brands at 5.1 percent.  Unit sales from national brands struck 3.4 percent during the period compared to a 0.5 percent decline for store brands.

 

Peggy Davies, President of PLMA, noted “Store brand loyalty continues to build on itself as consumers have tweaked their behavior over the past few years and retailers and manufacturers have responded with more selections.”  The trend towards store brands has been accentuated by a range of new products as exemplified by Kroger launching 223 new Our Brands® products during the first quarter of the year and Albertsons consolidating diverse store brands.

 

Walmart estimates that 20 percent of sales are now derived from private label products that represent a significant base for 10,000 stores and associated websites. Amazon is evidently promoting the 365® brand in both brick-and-mortar Amazon and Whole Foods locations and through on-line ordering. The ubiquitous Kirkland® Brand is a mainstay of Costco Wholesale shelves.

 

The trend of the past five years towards store brands has implications for egg producers. The outstanding exception is the only nationally advertised and distributed brand that has achieved a preeminent position based on decades of quality and nutritional attributes and a solid and loyal following.