Fairtrade America Taps Private Label Growth As Hot Trend For 2024

Private label brands will continue to grow as the preferred choices for consumers seeking more affordable premium products.

That was one of several trends identified for 2024 by Fairtrade America, the U.S. branch of Fairtrade International. In addition, the organization highlighted the growing role sustainability plays in consumer purchasing decisions, and the negative impact greenwashing has on companies that are less than truthful about their claims.

According to Fairtrade, many private label brands today symbolize a "premium" or preferred line that consumers value for more than price. Target, for example, recently touted its Good & Gather brand as a "crown jewel" of its grocery business. There's opportunity for both retailers and manufacturers to capitalize on shoppers' shifted perspectives on these brands in 2024.

For retailers, meeting shoppers' sustainability values, in addition to price expectations, is the next frontier of growth for private label and could be a key that unlocks broader store success, the report said. Fairtrade's 2023 consumer research showed that two in three consumers familiar with Fairtrade prefer to shop at retailers that they know carry certified products. They'd also purchase more Fairtrade products if they were available where they shop.

For brands, offering those "extras" in value beyond price is the next evolution to stand out to customers. Retailers will likely emphasize sustainability in their product selection as they strive to meet shoppers' expectations.

"We're encouraged by the momentum toward value chains that actually live up to their promises of positive impact," said Amanda Archila, executive director of Fairtrade America. "We at Fairtrade are ready to help businesses in understanding, implementing and talking about their partnerships with the people behind our most beloved products."

Additionally, sustainability will continue to have a significant impact on the products consumers buy in the coming year. Data from the NYU Stern Center for Sustainable Business show that, while representing just one-fifth of the total CPG market, sustainability-marketed products were responsible for one-third of market growth, and these products grew about two times faster than their conventionally marketed counterparts.

But with the growing number of products on the market offering sustainability claims, consumers are growing more skeptical. Data from Nielsen NIQ revealed 77% of consumers would stop buying from a brand that was guilty of "greenwashing," and new research from Sustainable Brands reveals 67% of U.S. shoppers are suspicious of environmental and social marketing messages. 

Fairtrade America said promising positive impact won't be enough in 2024 as brands will need to show shoppers that they're walking the walk. It will be important for businesses to invest in trusted third party supply chain certifications, such Fairtrade, as a step toward verifiable and meaningful sustainability that consumers recognize and trust, the organization said.