Private Label Sales Continue To Grow
The private label marketplace enjoyed another strong year in 2023 as dollar sales were up more than $10 billion, according to new data from the Private Label Manufacturers Association.
Sales from January 1 through December 31 total $236.3 billion. Dollar sales for store branded products were up 4.7%, best national brands that grew at a rate of 3.6% in 2023. Nine of the 10 categories tracked by PLMA’s Unify + market data platform from Circana were up in the previous year. Only tobacco was down.
On a percentage basis, the three categories seeing the largest growth were beauty, +10.5%; general food, +10%; and beverages, +8.9%. Growth in home care was a close fourth at +8.7%.
Dollar sales in the largest category in private label, refrigerated products, grew 1.8% to $46.7 billion.
While beauty remains a smaller category in private label, accounting for $3.9 billion in sales during 2023, retailers continue to give the segment added attention. During the 2023 Annual Private Label Trade Show in Chicago, attendees were able to visit suppliers offering a host of beauty-related products including cosmetics; fragrances; skin, nail, and hair care; and men’s grooming.
The continued growth seen in the private label segment as it pertains to beauty products is happening across several retail channels. Experts that spoke with Store Brands noted that retailers in the drug and mass channels are seeing the greatest growth, but retailers in other channels are also moving forward to expand assortments.
For example, Family Dollar in October rolled out its exclusive Levitate Beauty skincare collection that features nine items. Working with Innovative Beauty Group’s (IBG) Brand Incubator, Levitate features a range of cleansers, serums, masks, moisturizers and a travel kit designed to offer a luxury skincare experience at an accessible price point.
Ranging in price from $4-$7, the line is available in more than 8,000 Family Dollar stores nationwide beginning in October.
