Circana Reports Spotlight Continued Private Label Growth
Circana has released a set of reports focusing on private label that show the expanding role store-brand products are playing in the U.S. retail marketplace and how private brands continue to have a major impact across the globe.
The company’s global research, From Growth to Transformation: A Global Private Label Perspective, explores regional approaches to private brands across the European Union, Australia, and the United States, while the second report, From Growth to Transformation: The U.S. Private Label Story, provides a deeper analysis of private label trends shaping the U.S. market.
According to Circana, the global findings reveal that private labels are becoming increasingly competitive in the CPG market, with retailers building brand equity through investments in innovation, sustainability, differentiation, and premiumization. These actions have pushed private labels beyond a focus on price.
Private labels are well-established in the European Union, holding 39% value share and 47% unit share with strong growth continuing in Spain and France. Relative to other global markets, U.S. private label share is emerging (22% value, 24% unit share), but is the fastest-growing in dollar sales. Even as inflation has eased, private labels continue to grow share.
Private labels continue to gain traction in the U.S., with CPG unit share increasing in 2024. Inflation, which initially fueled private label growth in 2022, remains a key driver as consumers seek value without compromising quality. Retail food and beverage leads private label expansion, with dollar share up in 2024. Private label sales are increasing in both mature categories, such as meat and bakery, and emerging spaces, including candy and snacks.
Circana officials said private label’s momentum is being driven by consumers increasingly shifting their shopping to value-driven channels, including mass, club, and e-commerce, and limited assortment retailers. Adoption is widespread across all consumer groups, with younger shoppers particularly eager to explore new products from their preferred retailers.
“Retailers will continue to tier their offerings with more margin-accretive premium products, while also leaning in on entry price-point products,” said Lyons Wyatt. “As retailers continue to build brand equity, they may rethink pricing and promotion strategies, but innovation — including with new products, localization, regionalization or unique partnerships — will continue to take center stage.”
