Private Brand Product Sales Continue to Rise, PLMA Says

Sales of private brand products continued to grow in the first half of 2023, with gains seen in dollar sales and unit share, according to a new report from the Private Label Manufacturers Association (PLMA).

Citing data from Circana, PLMA said store brand dollar sales across all U.S. retail outlets for the six-month period ended June 18 were up 8.2%, versus a gain of 5.1% for national brands. This year’s figures are compared to sales figures from the first half of 2022. 

When measured against the first six months of 2021, dollar sales during the same period this year were up 16%, or about $17 billion ($91 billion in '21 vs. $108 billion in '23).  

Unit sales of store branded products for the six months were down 0.5%, while national brands fell 3.4%. For the month of June alone, the most recent Circana report finds that while store brand units were off slightly at minus 0.6%, national brands dropped 5.1%. 

As a result, store brand dollar share rose to a record 18.8% for the half-year, while unit share moved up to 20.5%, also a new high. Total store brand dollar sales for the first six months of this year were $108 billion and unit sales were 26.4 billion. Totals last year were $100 billion in dollar sales and 26.5 billion in unit sales.  

"These numbers may grow as student loan repayments resume and borrowers of all ages lean further into strategies to tighten household budgets, including adding more value-friendly store brand items to their grocery lists,” said Mary Ellen Lynch, principal at Circana. 

While economic headwinds such as those mentioned by Lynch could further drive sales of private brand products, the industry is also expected to continue benefitting from consumers who have found quality store brand products at a better value.

“Having opted for a store brand over the national brand for the first time, there's a strong likelihood the shopper will stick with the store brand,” said Peggy Davies, president of PLMA. “In addition, we are also seeing retailers doubling down on product innovation in food and non-food to take advantage of the flow of new store brand customers." 

Among the major departments that Circana tracks for PLMA, the Beverage category experienced the largest store brand dollar sales gain over the past 52 weeks, up 19%; followed by General Food and Refrigerated, both ahead 16%; then Frozen and General Merchandise, both plus 8%. Home Care (7%), Beauty (5%) and Health (3%) were also winners. In the two smallest departments, dollar sales in Liquor were ahead by 20%, but in Tobacco they fell 13%.  

Departmental unit sales followed much the same pattern. In the major sections, Beverages led the pack, up 6% in store brand units, followed by Refrigerated and General Food, both plus 5%; then Home Care (up 4%), Health (2%), and General Merchandise (2%). Frozen came in even and Beauty shed 2%. Liquor was up 22% while Tobacco was down 14%.