New Report Highlights Continued Private Label Growth
Nearly 9 in 10 shoppers are purchasing private label products each time they visit the grocery store with 77% of consumers viewing private brands that launch limited-time offers and new flavors favorably, according to the 2024 Private Brand Intelligence Report from Advantage Solutions and Daymon.
With more than three-quarters of shoppers having a positive view of store brands products, a key element is an effort by retailers to use their own brands for limited-time officers and new flavors. Notably, 86% of shoppers said they seek out seasonal flavors from store brand products.
A continual effort on special offers and new products keeps shoppers coming back while also enhancing their store experience, the report said.
Overall, the Advantage Solutions/Daymon report noted that private brand unit share sits at 21.8%, with dollar share at 19.6% for the 52 weeks ending August 10, 2024. Unit share over that period grew 1.5% with dollar share up 2.7%. By comparison, national brand unit share was down 1.2% while dollar share was up 1.1%.
Additionally, several edible departments continue to see private brand growth. Key categories with unit share above 20% include bakery (43.5%), dairy (37.1%), deli (29.5%), frozen (24.8%), and meat (24.1%).
Non-edible departments about the 20% unit share mark include household care (33.7%), general merchandise (30.2%), and health & beauty care (20.2%).
The report noted the general merchandise category saw some of the largest share gains over the past year and is the second-largest private brand non-edible department by unit share.
“Shoppers, especially younger generations, are more discerning, seeking unique pieces that reflect their individual identities,” the report said. “Private brands offer the perfect canvas for retailers to cater to these evolving preferences, with some hearing the sounding call and delivering.”
According to the report, the mass and club channels are notable forces driving shopper engagement and loyalty with on-trend private brand home and apparel items. Retailers such as Target, with its strong designer collaborations, Walmart with the social buzz for their children’s private brand apparel, and Costco with their Vuori brand athleisure dupes are just a few case studies showing how fashion and trends are pushing private brands further.
