Circana has released two new reports highlighting the continued global momentum of retailers’ private label products. Initially driven by cost-conscious shoppers, private labels have evolved into sought-after options as consumers increasingly recognize the quality and variety retailers offer.
Circana’s global research, From Growth to Transformation: A Global Private Label Perspective, explores regional approaches to private brands across the European Union, Australia and the United States, while the second report, From Growth to Transformation: The U.S. Private Label Story, provides a deeper analysis of private label trends shaping the U.S. market.
The global findings reveal that private labels are becoming increasingly competitive in the CPG market, with retailers building brand equity through investments in innovation, sustainability, differentiation and premiumization. These actions have pushed private labels beyond a focus on price.
Private labels are well-established in the European Union, holding 39 percent value share and 47 percent unit share with strong growth continuing in Spain and France. Relative to other global markets, U.S. private label share is emerging (22 percent value, 24 percent unit share), but is the fastest-growing in dollar sales. Even as inflation has eased, private labels continue to grow share.
Private labels continue to gain traction in the U.S., with CPG unit share increasing in 2024. Inflation, which initially fueled private label growth in 2022, remains a key driver as consumers seek value without compromising quality. Retail food and beverage leads private label expansion, with dollar share up in 2024. Private label sales are increasing in both mature categories, such as meat and bakery, and emerging spaces, including candy and snacks. Private label’s momentum is being driven by consumers increasingly shifting their shopping to value-driven channels, including mass, club and e-commerce, and limited assortment retailers. Adoption is widespread across all consumer groups, with younger shoppers particularly eager to explore new products from their preferred retailers.
“Private label will continue its growth trajectory, but the next wave of growth may come from different places,” said Sally Lyons Wyatt, global EVP and chief advisor at Circana. “While value channels have recently driven private label gains, expect more grocers – both large and mid-sized – to invest more aggressively, making private labels a core growth strategy. Retailers will continue to tier their offerings with more margin-accretive premium products, while also leaning in on entry price-point products. As retailers continue to build brand equity, they may rethink pricing and promotion strategies, but innovation – including with new products, localization, regionalization or unique partnerships – will continue to take center stage.”
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