The U.S. market appears poised for a substantial increase in acceptance of and demand for private label, mirroring European trends, according to a Rabobank report by Tom Bailey, Senior Analyst - Consumer Foods.
With a focus on quality and value, U.S. market share could grow from the current 19% to 30% by 2033, according to the report. Economic pressures, market dynamics, and strategic industry shifts are among the growth factors.
Consumers facing financial strain are increasingly turning to private label, as evidenced by rising sales and traffic to discount grocers. Retailer consolidation and the growing influence of major brands are also reshaping the market, potentially leading to more – and better-quality – private-label offerings, according to the report.
Improving private-label supply is key to future growth, the report states. Retailers are launching new premium brands such as Amazon Saver and Walmart’s bettergoods; domestic suppliers are investing in production; and international producers are increasing supply via exports and, in some cases, by expanding production into the U.S. market.
Bailey will be a featured speaker at PLMA's 2025 Leadership Conference & Annual Meeting, in Scottsdale, April 2-4. His topic is The Perfect Storm, an analysis of the myriad factors that came together this year to spur private label growth.