Private-label goods are products sold under a retailer’s own brand. They are available for many categories of packaged consumer goods and sold through several retail channels, though most commonly in supermarkets. Globally, the private label segment has the highest market penetration in Europe, followed by North America. Depending on the country, the private label segment makes up between 20 and 50 percent of supermarket unit sales in Europe.
Considering sales growth rates, private-label consumer goods are performing better than branded products. Consumers have recognized that private label products can offer comparable or superior quality and value compared to the national brands they used to buy, which is why they have made the switch. The recent surge in inflation has also contributed to this trend as consumers have started to reduce their spending on name brands and opt for private label products instead.
Store brands' value and volume market share of the retail industry in the United States in 2020 and 2021
Further details: Visit original statistic Store brands' value and volume market share of the retail industry in the United States in 2020 and 2021
In the United States, private label accounts for 17.7 percent of the whole retail market and has a value of roughly 199 billion U.S. dollars. In the EU, the size of the store brand market varies significantly between countries. The share of grocery retail market value held by private labels was highest in the United Kingdom and the Netherlands.
Private label food and beverage sales in the U.S.Leading private label categories in supermarkets in the United States in 2021, based on sales (in billion U.S. dollars)
Further details: Visit original statistic Leading private label categories in supermarkets in the United States in 2021, based on sales (in billion U.S. dollars)
Private label goods have made major headway in retail and can be found in a wide variety of categories. In the consumer packaged goods market in the U.S., private label accounts for over 17 percent of all sales. In supermarkets, refrigerated products were the best selling store brands goods, accounting for over 40 billion U.S. dollars in sales. In Germany, private label brands held a majority share of tissue products while in Italy their highest share was in the fruit and vegetables segment.
Private label share of U.S. consumer packaged goodsPrivate label value share of fast-moving consumer goods (FMCG) in Europe from 2018 to 2022
Further details: Visit original statistic Private label value share of fast-moving consumer goods (FMCG) in Europe from 2018 to 2022
Private label consumer goods have become increasingly popular in Europe due to growing demand for high-quality products at lower prices, the rise of discount retailers, and the increased focus on sustainability and transparency in the supply chain. Private labels have achieved a market share of 36 percent in the region, with a market share of over 50 percent in Switzerland and more than 40 percent in countries such as the Netherlands, Spain, and the United Kingdom.
Share of consumer goods' sales value held by private labels in European countriesShare of sales of store brands at retailers in the United States in 2022
Further details: Visit original statistic Share of sales of store brands at retailers in the United States in 2022
In recent years, retailers have shown a growing interest in private label brands, with many stores now selling their own branded products in addition to national brands. Nevertheless, for some retailers like Aldi, private label brands are not just an added bonus, but the primary source of their sales. The German discounter generated nearly 78 percent of its sales in the U.S. from its store brands, followed by Trader Joe's with just under 60 percent.
Likelihood to buy supermarket private label products in the UKPrivate label value share of fast-moving consumer goods (FMCG) worldwide in Q2 2022, by region
Further details: Visit original statistic Private label value share of fast-moving consumer goods (FMCG) worldwide in Q2 2022, by region
Latin American has a notably low share of private label sales among fast-moving consumer goods. Only 2.3 percent of sales in the region came from store brands compared to 36 percent in West Europe. One possible explanation for this is the fact that many grocery chains are regional and don't command the brand presence of national chains in markets elsewhere in the world.
Fastest-growing private label markets worldwide
This category covers the market of consumer goods sold under the own brands of retailers. The products are usually supplied by third-party manufacturers, which have a portfolio of different customers: national brands, retailers, or even service providers. Statistical information about the private label market is most often provided in relation to the whole in-store retail market. Similarly, spending intentions reported by consumers are usually described as a choice of private label brands over all other brands available in the market. Dollar and unit sales of specific categories of products provide further insights, especially in the grocery sector.
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