The Future Is Bright
When the private label industry reconvenes in Chicago for the annual PLMA Private Label Trade Show, it does so with a strong tail wind and many looking forward to growth opportunities in 2024.
But before turning the calendar to the New Year, attendees walking the aisles at the Donald E. Stephens Convention Center will have the opportunity to meet with more than 1,650 exhibitors, which according to PLMA is a record for the event. There will be many familiar companies and a host of new ones at the show, given the growth of product suppliers from outside the U.S. representing nearly 60 countries.
Prior to its annual Windy City gathering, Peggy Davies, president of the Private Label Manufacturers Association, spoke with Store Brands, sharing her thoughts on various topics including continued growth across private label, and what suppliers and retailers need to do to keep momentum going.
STORE BRANDS: As 2023 comes to a close, consumer demand for private label products remains strong. How are you seeing the industry evolve to meet this continued demand and take advantage of new selling opportunities?
PEGGY DAVIES: Keeping an eye on consumer attitudes and trends is paramount for the industry’s continued growth. Technology has opened unlimited opportunities for CPG companies by allowing retailers to carry products that 15 or 20 years ago, were only available in certain regions of the country or outside the U.S. As retailers are developing products to tie into consumer desires for healthy, clean, ‘free-from’ food and non-food products, they are ramping up their connections with consumers by expanding beyond the old-fashioned marketing vehicles of print, radio and television. Now consumers are able to connect to private brand influencers. Commercials for own brands are on streaming channels such as YouTube and social platforms including Instagram, TikTok, and Facebook. The quality of the marketing message suits all generations and resonates with diverse shoppers with snappy music, inclusivity, and messages that connect to their needs and desires. Couple this with the stabilization of the supply chain, certainly consumer confidence is renewed enabling them to consistently find and purchase store brand products in their local store.
International Growth
International exhibitors comprise nearly 45% of the show floor at the 2023 PLMA Show in Chicago, which includes more than 30 national pavilions and represents nearly 60 individual countries.
STORE BRANDS: What next steps do retailers and suppliers need to take as a collective to maintain this momentum?
DAVIES: As an organization, PLMA believes collaboration is the path forward, whether it’s with product innovation, supply chain operations, or marketing. The success of private label, in particular, hinges on a strong, productive and lasting relationship between manufacturers and retailers.
STORE BRANDS: How has the growth in private label sales in recent years impacted PLMA and how it interacts with its membership? Has there been a need to evolve the features and services it offers in the marketplace?
DAVIES: Like every organization, over the past three years PLMA has strategically evolved to meet new challenges and seize opportunities that provide our membership with professional networking and development to benefit not only their companies but their personal growth and knowledge of our industry. We’ve expanded our online programming to accommodate the hybrid work setting and we actively listen to our board, committee members, and our retail council on what’s top of mind within their businesses. We have put a targeted focus on our digital communications to our members, the industry, and related industries around the world through our social media reach on LinkedIn and Twitter (now X).
STORE BRANDS: For those attending the 2023 PLMA Show in Chicago this year, what’s new? Which categories are seeing the largest growth in terms of number of companies exhibiting at the show?
DAVIES: With a sold-out exhibit floor there’s a lot to talk about. Our international presence is exceptional. It comprises nearly 45% of the show floor and includes more than 30 national pavilions and represents nearly 60 individual countries. Overall, we’ve added nearly 260 exhibitors and should finish at 1,650 or more, which is an all-time record, and increased exhibit booths by 450. We’re pleased with the numbers.
There will be tens of thousands of innovative, on-trend products including authentic flavors and fragrances, sustainable, clean and ‘free-from’ in both the food and non-food categories. The non-food categories at the show will include household products, health and wellness, beauty and cosmetics, paper and plastic, pet care and kitchenware. Buyers and category managers will once again see baby diapers and wipes, as well as adult incontinence products and feminine hygiene. On the food side, there’s tremendous growth in authentic ethnic products and healthy food product offerings, prepared foods, as well as the expansion of wine and spirits.
To quote Anthony Aloia who champions our trade show enterprise, we’ve seen a “whopping” 40% increase in non-food exhibiting companies this year. His team doubled down on their research and efforts to reach those companies with products our visitors are looking for. As you walk the show floor, we think you’ll be impressed by the expansion and the range of non-food products being presented.
STORE BRANDS: There is clearly growth of international exhibitors. What is driving their desire to be part of the show?
DAVIES: It’s the evolution of today’s consumer and their interest for authentic global foods, flavors, and ingredients. We’re truly a global community with technology driving this demographic shift. Authentic products are in demand such as wines from South Africa, cookware from Italy, Belgian chocolates, and sauces from South America are just a sampling of the thousands of products ripe for expanding retailers’ store brand portfolios to meet their shoppers’ wants and needs. It goes back to your initial question of what’s going to continue the growth of store brands. Keeping an eye on the global consumer.
STORE BRANDS: What items of importance are on the top of PLMA’s checklist as we head into 2024?
DAVIES: Of utmost importance is to learn from our members and retail partners their focus and challenges and then provide solutions and opportunities for their mutually profitable business growth. Locating manufacturers who are at the forefront of the developing trends will translate to exciting exhibitor expansion at next November’s trade show. Maximizing New Product Expo, within our Idea Supermarket area, showcases a curated display of innovative products which exhibitors are proud to bring to retailers’ attention at the show. In Show Navigator, the New Product Announcement section is used by exhibitors to spotlight their innovations in product and packaging. Next year, our International Salute to Excellence program will once again include private brand wines. The judging, scheduled for March 2024, will call for nominations from retailers globally.