Store brands have much room for growth in U.S., data suggests

1/19/2018

Aldi and Lidl's rapid U.S. expansion and preponderance of private brands suggest strong growth potential for store brands in this country.

An article posted Jan. 17 on BusinessInsider.com noted that the United States is “way behind” the United Kingdom when it comes to private brand packaged groceries.

In 2016, store brand consumer packaged goods (CPGs) accounted for 14.5 percent of U.S. spending in grocery stores, according to the article, which cited IRI data. In the U.K., store brand CPGs constituted 51 percent of grocery spending during the same time period.

But the rapid U.S. expansion of Aldi and Lidl, each with a roughly 90 percent private brand SKU assortment, suggests that store brands have tremendous growth potential in this country, the article emphasized. Total sales at private brand discount grocers “could surge to $37.7 billion in 2020,” according to Fung Global Retail and Technology, which was quoted in the piece.

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