SUMMARY: Through an improvement in perception and offerings, private label products have become sought after instead of afterthoughts. In the past year, 55% of shoppers have made a private label purchase. The top reason for doing so was liking the product (56%), followed by the product being cheaper (52%).

Two-thirds of shoppers say that store brands are just as high-quality as name brands


  • With the accelerated sales growth of private-label consumer products annual sales are growing faster than national brand sales and have effectively disrupted the category.
  • Consumers are increasing their spending on private label products and have become “much more willing to splurge on store brands than they would for name brands,” according to Nielsen.
  • The success of store brands in the mass channel is posing a big challenge for national brands.
The death of national brands


  • US private-label CPG sales growth accelerated from 2.2% in 2015 to 5.8% in 2018, according to IRI.
  • Major retailers have rolled out private labels across a range of CPG product categories. Target and Kroger have recently launched new CPG brands.
  • Retailers’ shopper data gives them an advantage in better understanding what consumers want, so they can launch private-label products to match.
  • CPG brand owners are fighting back by adding direct-to-consumer channels and boosting R&D spend for product differentiation.
Private-label a major disruptor in the <b>US</b> consumer packaged goods
  • More than half of consumers are loyal to a specific store due to its private label brands, according to a report from retail consulting firm Daymon. The report also found that 85% of consumers say they trust a private brand just as much as a national brand, and 81% say they purchase a private brand product during every shopping trip. 
  • Private brand dollar sales grew 4% in 2018, nearly six times the growth of national brand sales. This growth was present in food, household, pet, beauty and personal care categories. 
  • The report also noted that 20% of sales growth in private brands comes from products that are branded premium, trendy or organic. About 41% percent of consumers would like to see more better-for-you products and 44% want more unique attributes. 
Grocery shoppers want more private label products

-Although Amazon has received much of the online private-label hype of late, Walmart’s brands sold nearly double the amount of products that Amazon’s brands did over the past year.

– Private-label apparel is growing as quickly as CPG products online.

-Private-label brands are creating a bigger divide between retailers and their suppliers. While just 5% of online sales comes from private-labels, they are growing at 65% year over year.

Private label is eating national brands for lunch

It appears consumers are rewarding those retailers who have placed an emphasis on promoting quality in addition to value as part of their private label offerings. In fact, [inlinetweet prefix=”” tweeter=”” suffix=””]just under 74% of Americans report they believe store brand products are a good alternative to name brands[/inlinetweet], suggesting “own brand” programs that are equally differentiated by experience as by pricepoint are finally closing any perceived quality gap between national brands, a recent Nielsen report revealed.