Private Brand Products Make Unit Share Gains In 2023

More than one-quarter of the products sold at retail in 2023 were private label products, according to a new report from Circana. 

In its CPG Private Brands Update, the report noted that total unit sales of private label products was 25.5% in 2023, up from 24.7% in 2022. Total dollar sales of store brand products were more than $217 billion, up 6% in 2023, with unit sales up 0.9%.

“Private brands are increasingly capturing market share from name brands, experiencing growth in both dollar sales and units,” said Mary Ellen Lynch, principal, Center Store Solutions, Circana. “This trend is driven by consumers, particularly those with children, as well as millennial and Gen X households without children, who are strategically employing a variety of methods to stretch their dollars amid high inflation.”

Private brands grew across general food, shelf-stable beverages, and refrigerated foods, as well as in beauty and home departments. Overall, sales growth was higher for private brand food and beverage (6.7%) compared to non edible products (5.1%).

Within food and beverage, private brands outperformed name brands, based on dollars and units for the core pantry. Also, retailers are treating their brands similarly to national brands by innovating with more clean labels, premium offerings and marketing support, the report said.

In terms of demographics, Circana noted that households with children represent 35% of private brand food and beverage unit purchases, while millennial and Gen X households with no children represent 36% of sales. Within those same cohorts, middle-affluent shoppers are the most engaged with private brands, yet lower- and upper-affluent millennial and Gen X households with no kids are driving growth.

The report also outlines opportunities for private brand growth. They include:

• Consumers are recognizing the value of private brands, even in the salty snack aisle, where name brands typically dominate
• Retailers can focus on the ways consumers are cooking today, and demonstrate how private brands work with small appliances, such as air fryers and multi-cookers, for easy-to-prepare meals
• Promoting store brands by leveraging digital marketing to lock in valuable cohorts like younger shoppers is critical
• Retailers are increasingly focused on expanding shopper trials of their private brand products to deepen trust