Private label sales hit record in 2021
During an inflationary year, store brand product sales hit a record $199 billion in 2021, according to data from IRI provided to the Private Label Manufacturers Association. The sales total is a 1% growth from the previous year.
“The main takeaway is that retailer brands are a vibrant industry and an important piece of the U.S. grocery business, especially in difficult economic times,” said PLMA President Peggy Davies.
Last month, the two groups discussed the private label landscape virtually, and while the market share for private label products shrank, overall sales increased. In the eight largest retail departments covered by IRI, private label grew in six. In the largest category, refrigerated foods, store brands increased by 0.7%, followed by general merchandise (+1.7%), health care products (+0.2%), frozen (+0.8%), produce (+11.4%), and beverages (+2.7%).
The growth hasn’t stopped in the new year. In January of 2022, private label sales grew 4.2% in dollar volume across all U.S. retailing channels, compared to the same period in 2021. The increase was about equal to the 4.4% growth of national brands, according to the IRI data.
The update comes ahead of the PLMA Global online trade show, being held from March 28-31, following the cancellation of in-person events in Chicago and Amsterdam.