Private label sales climbed nearly 4% in 2024

The trend: An increasing number of grocery shoppers chose private label brands over national brands last year.

• Store brand sales rose 3.9% YoY to $271 billion in 2024, compared to just 1.0% growth for national brands, per a report from the Private Label Manufacturers Association based on Circana data.
• All 10 food and nonedible departments that Circana tracks showed YoY dollar growth, led by refrigerated (7.5%), general food (4.3%), and beverages (4.0%). The fastest-growing categories in unit sales were beverages (3.5%), pet care (3.5%) and home care (3.3%).

Zooming out: Store brands have been eating into national brands’ share in recent years; private label unit sales are up 2.3% since 2021, while national brand sales fell 6.8%.

• Grocery inflation—which peaked at 11.4% YoY in 2022—drove many cost-conscious consumers to trade down to private labels to save money.
• Those shoppers liked what they found; a large share (80%) say store brands are “just as good or better than” name brands, per an Ipsos survey.
• Consumers’ rising willingness to try private labels has driven retailers to invest more in them; more than 90% of industry survey respondents plan to increase private brand investments in the next two years, per the FMI—The Food Industry Association.

Our take: Private labels offer a win-win for both consumers and retailers. They allow consumers to enjoy high-quality products at lower prices, while helping retailers differentiate their offerings and build brand loyalty.

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