Private label purchases of consumer packaged goods typically occur more often in the physical or offline retail channel as opposed to online, since consumers tend to buy private label options from the brick-and-mortar stores they trust. The most profitable retail channels for private label products were mass merchant stores, where private label products generated sales of 77.8 billion U.S. dollars, followed by supermarkets with sales worth roughly 73.1 billion U.S. dollars. However, looking at the online sales of consumer packaged goods, private labels reported lower numbers than other categories of manufacturers operating in the United States in 2020. In terms of product categories, household paper and plastics products generated the highest sales in supermarkets, while baby food registered an outstanding growth, compared to other consumer goods.
The perception of private label brands used to be quite negative. This has changed over recent years, with consumers from all generations embracing store brands. The changing shopping habits due to the coronavirus (COVID-19) pandemic, economic factors, as well as 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.