FMI – The Food Industry Association has released its latest report, “The Power of Private Brands 2025: Industry Strategies to Sustain Momentum,” revealing how e-commerce is reshaping food retail private brands and how food retailers are leveraging digital tools to differentiate, build shopper loyalty and grow sales.
Among the report’s findings: nearly 85 percent of private brand assortments are now available online, reflecting a sharp increase in digital accessibility. Food retailers continue to expand their private brand e-commerce strategies, recognizing that online growth will likely outpace in-store sales.
In 2024 alone, private brand online sales grew by 5.2 percent, with 9.3 percent of private brand sales now conducted online.
“The growth of e-commerce has opened new avenues for private brands to thrive,” said Tom Cosgrove, director of industry relations at FMI. “Retailers are not only expanding their online private brands assortments but also innovating how they engage with consumers digitally. This is a pivotal shift for the food retail private brands industry.”
Revealed in this latest operations analysis, food retail private brand professionals also are doubling down on strategies to build shopper interest and loyalty. Nearly half of survey respondents said they are well along in leveraging private brands as a key differentiator, up from just over one-third last year.
“Companies are emphasizing both in-store and online marketing to meet shoppers where they are,” said Steve Markenson, VP of research and insights at FMI.
“Sixty percent of survey respondents indicated they plan to enhance their private brand marketing, and 29 percent responded that they are enhancing online shopping/omnichannel. Social and digital media remain central to reaching younger consumers, while food retailers pursue multiple approaches to spotlight private brands in e-commerce.”
As online visibility becomes more critical, brands are enhancing product images, ensuring strong search performance and enabling seamless access to information, all to make the digital shelf more impactful.
About FMI
As the food industry association, FMI – The Food Industry Association works with and on behalf of the entire industry to advance a safer, healthier and more efficient consumer food supply chain. FMI brings together a range of members across the value chain – from retailers that sell to consumers, to producers that supply food and other products, as well as the wide variety of companies providing critical services – to amplify the collective work of the industry.
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