Statistics and Facts on the private label market in the U.S.
by Cory Schulz
Private label brands are a line of products in a wide range of industries that provide a lower cost alternative to regional, national or international brands. In 2009, the market share of private label brands
in the United States was 17 percent. In autumn of that year alone, a survey revealed that just over 106 million U.S. residents consumed store brand or private label food
within the last thirty days.
The perception of private label brands used to be quite negative. In 2008, 20 percent of U.S. consumers felt PLB's were for people on tight budgets who couldn't afford the best
; but due to the economic downturn in recent years, consumers have changed their mind-set on these products. 60 percent of U.S. consumers purchased private label brands during the economic downturn
and have been made aware of the fact that, in terms of quality and value, these products are equally good or even better than the name brands they used to purchase. As a result, 94 percent of consumers in North America will continue to buy private label products when the economy improves
Private label brands provide various advantages for retailers. They help control over-pricing of products and services, provide higher control on production, marketing distribution and profits, which in turn helps build value and recognition from their customers.
Photo: istockphoto.com / skynesher