Volume sales of private-label and branded goods in US retail outlets both declined in the opening half of 2023, although own label’s share of unit sales hit a “record”, data shows.
In the six months to 18 June, store-brand unit sales dipped 0.5%, compared to a 3.4% fall in branded unit sales, according to figures produced for the Private Label Manufacturers Association (PLMA) by market researchers Circana.
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Sales of private-label drinks rose 6% in volume terms, followed by refrigerated and general food, both up 5%. Frozen “came in even”, the association said.
Overall, store brands accounted for 20.5% of unit sales, which the PLMA described as “a new high”.
In dollar terms, private-label sales were up 8.2%. Branded sales rose 5.1%. Measured in dollars, store brands accounted for 18.8% of sales, another record, the association said.
Beverages again led the way, up 19% on the year, followed by general food and refrigerated, both ahead 16%.
Measured against the first six months of 2021, store brand dollar sales improved by 16%, or about $17bn.
Total store brand dollar sales for the first six months of this year were $108bn and unit sales were 26.4bn.
PLMA president Peggy Davies suggested the headwinds of an uncertain economy are weighing heavily on consumers’ minds against a backdrop of branded product price hikes.
She also argued store brands have benefitted from several years of consumer trial.
“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,” she said.
“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.”
In a survey conducted by research firm The Hartman Group earlier this year, 41% of US grocery shoppers said they’ve purchased more private-label brands since 2020, with 30% citing higher grocery prices as the primary reason for doing so.
And while 55% of US consumers said they buy retailer or store brands because the products are cheaper, 63% said private-label brands offer good value, which is why they purchase them.
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