Dive Brief:
- Private brands achieved new records in unit and dollar share during the first six months of 2024, compared to the same period a year ago, according to Circana data provided to the Private Label Manufacturers Association.
- Store brands have a roughly 23% unit market share and 20% dollar market share as of June 16, PLMA and Circana said Tuesday.
- If sales continue at the same rate, total store brand revenue for this year may surpass a quarter trillion dollars for 2024, PLMA estimates.
Dive Insight:
While national brands had four times the amount of total sales ($472 billion) of store brands ($121 billion) for the first half of the year, the Circana data indicates that private brands have roaring popularity.
Store brands’ growth in units and sales outperformed national brands. Store brand dollar sales were up 2.3% and unit sales were up 2.5%. By comparison, national brands recorded a more modest gain of 1.1% for dollar sales while units dropped 0.8%.
PLMA President Peggy Davies said in a statement that the Circana data showcases the phenomenon of store brands “sweeping the retail industry across all channels, departments and categories.”
Nine of the 10 individual product departments tracked by Circana for PLMA saw dollar sales gains for the 52 weeks ending June 16. The beauty department improved the most, up 10%, followed by liquor and general food, up 8.8% and 6.9%, respectively. Refrigerated was the only department that saw a decline, slipping 0.7%.
Circana and PLMA’s findings echo recent research from FMI — The Food Industry Association indicating private brands are poised to keep their momentum. Nearly half (46%) of surveyed grocery shoppers said they plan to buy somewhat or much more private brands over the next year or so, compared to 27% who said the same for name brands, FMI found.
The first half of this year has seen several launches and expansions of grocery private brands leading to traditional supermarkets facing stiffer competition from mass retailers and discounters. Walmart, Dollar General, Grocery Outlet and Target have all made recent moves to beef up their private label grocery offerings.
