Private label purchases of consumer packaged goods typically occur more often in the physical or offline retail channel as opposed to online. As consumers tend to buy private label options from the brick-and-mortar stores that they trust. Store brands accounted for 17 percent of consumer packaged goods dollar sales in physical retail stores in the United States as of 2019, whereas the dollar sales share of private label consumer packaged goods sold online was three percent. Store brands are a feature of almost all retail stores' product offering. On average, private label products account for 21 percent of consumer packaged goods at U.S. retailers. However, this figure is much higher in certain retail channels. In value grocery stores in the United States, store brands accounted for almost 60 percent of all consumer packaged goods.
The perception of private label brands used to be quite negative. This has changed over the last number of years, with consumers from all generations embracing store brands. Economic factors and an improvement in product quality and variety aided in changing consumers' attitudes towards store brands. Consumers have come to realize that, in terms of quality and value, these products are often as good as the national brands they used to purchase.
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.