Private brand sales hit record
In 2022, private label brand sales hit a brand new record, according to the Private Label Manufacturers Association.
Within the last year, sales jumped 11.3% to $228.6 billion in all outlets in the United States for the 52 weeks ending Jan. 1, 2023.
Due to the increase in performance, store brands also grew nearly twice the rate of national brands, which were up just 6.1% in dollar sales, according to the organization.
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“The store brands business is booming,” said PLMA president Peggy Davies. “Last year’s record sales and double-digit growth reflect the strong consumer demand for store brands. Shoppers are filling their baskets with great-tasting, innovative and high-quality store brand foods, beverages, nonfoods, household goods and many other categories.”
Dollar shares increased 18.9% from 18.2% in 2021 and unit shares grew 20.5% from $19.9%. A reason for the growth was the inflationary environment that motivated more shoppers to try, buy, like and remain loyal to store brands because of the quality they provide, the study notes.
While private brand unit sales slipped by 1% in 2022, they outperformed national brand unit sales, which dropped -4.1%.
Of the 17 departments IRI tracks, 16 showed store brand growth. Numerous categories even had double-digit sales gains. The fastest-growing segments are beverages, up 19% to $12 billion; deli-prepared foods, 17% to $5.9 billion; refrigerated foods, 17% to $47.4 billion; liquor, 15.6% to $62 million; general food, 14% to $38.6 billion; floral, 13.5% to $883 million; bakery, 12.6% to $8.4 billion; produce, 11.9% to $13.5 billion and deli meat, 10% to $1.7 billion.
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Strong sales were also reported in general merchandise, up 9% to $27.7 billion; frozen foods, 8.2% to $17.7 billion; deli cheese, 5.5% to $754 million; meat, 5% to $26.5 billion; health care products, 3% to $17.6 billion, beauty, 2.7% to $3.7 billion; and homecare, 2% to $2.7 billion.
“When it comes to quality, value, taste and performance, store brands can’t be beat,” Davies said.