Store Brand Performance: Fast-Growing Departments

Product departments across the board experienced store brand market share gains last year, according to PLMA’s 2024 sales data from Circana Unify+.

Store brand unit share increased in all nine departments, with the best gains in General Food (+0.7%), followed by Beverages, General Merchandise and Home Care, all +0.5%. Store brand unit share is highest in General Merchandise, at 41.4%; then Refrigerated (38.4%); Frozen (27.5%) and Health (25.5.%).

In store brand dollar share, the leading gains were recorded in Frozen (+0.6%); General Food (+0.5%) and General Merchandise (+0.4%). Top store brand dollar shares are in Refrigerated (36.4%); General Merchandise (33.4%); and Frozen (25.9%).

Store brand expansion occurred across the store. The products racked up dollar sales gains in 129 of 167 edible categories (77% of them) and unit sales improvements in 118 (71%). Among 153 non-edible categories, dollars grew in 79 (52%) and units were up in 85 (56%).

Total store brand sales for 2024 surpassed a quarter trillion dollars, coming in at $271 billion, establishing an all-time high in annual revenue. Sales of store brand units were 67.4 billion, also a record.

Annual sales of store brands increased by $51.7 billion, or plus 23.6%, over the past four years while unit sales moved ahead 2.1%, or up 1.4 billion. Over the same period, national brands gained 11.5% in annual dollar sales but slumped -6.8%, or down 16.2 billion, in units.

One of four grocery products purchased in the U.S. during 2024 carried the store's name or one of its proprietary brands.

Dollar sales increased 4x that of national brands last year as the products powered ahead 3.9% compared to a gain of only 1% for their branded counterparts. Looking at unit sales, the disparity was similar. Store brands advanced 2.3% versus the figure for all of 2023 while national brands fell -0.6%.

Departmental sales provide a broad picture of the 2024 numbers. All ten food and non-food sections finished ahead of the prior year in dollar sales with the two largest -- Refrigerated (+ 7.5%) and General Food (+4.3%) -- gaining the most. In unit sales, nine of ten improved, led by Beverages and Pet Care, both 3.5%.

Top 5 grocery trends

NIQ has released a report on the five biggest grocery trends that will shape 2025. The first trend is “Private Label Continues to Grow”. Globally, 50% of respondents report that they are purchasing more private label products than ever before. Shifting demographic patterns and consumers’ increasing focus on value-driven shopping is not expected to change.

Second trend is “Sustainability Matters to Consumers”. 95% of consumers say they are trying to take some action to live sustainably. NIQ advises companies to make sustainable attributes of products accessible on product pages and clear on packaging. Trend 3 is “Consumers are Trying to Save”. Inflationary pressures coupled with increased housing costs and broader economic uncertainties are causing consumers to adjust their purchasing habits to navigate a financially challenging landscape. To stay relevant with these shifting consumers, more premium grocery brands may need to do a better job of conveying the true value of their products and position them as purchases worth the extra expense.

Fourth trend is “Pricing and Promotions are Key”, dynamic pricing, personalized pricing, or automated pricing coupled with thought-out promotion strategies are key to success. Last trend is “Omnisales are on the Rise”: sales of CPG products purchased online are growing and the area with the most opportunity for online sales growth going forward is Food. Increasing sales in an omnichannel world requires focus and accurate, actionable data. Tracking retail sales, market trends, and consumer behavior all play a role in the process of aligning product offerings with consumers’ needs and be visible across all channels.

Top 10 food & beverage trends

Market insights provider Innova has published its annual Top 10 Food and Beverage Trends for 2025. The first trend is “Ingredients and Beyond”. It refers to companies differentiating themselves by including higher quality ingredients in their products, for example, protein, bioavailability and absorption.

Second trend is “Health – Precision Wellness”, with 60% of consumers say that they are proactive about their health. Companies that play into this trend provide easy-to-consume functional items tailored to consumers’ life stage and health needs. Third trend is “Flavors – Wildly Inventive”, referring to unexpected flavours, fusion cuisines, unusual formats and limited editions. Trend 4 is “Gut Health – Flourish from Within” which highlights consumers’ growing interest in digestive health, driven by key ingredients like fibre and probiotics. Trend 5 is “Plant-based – Rethinking Plants” based on the facts that 55% of consumers believe plant-based products should be standalone items rather than meat and dairy alternatives.

The final five trends in the Top Ten for 2025 are: “Sustainability – Climate Adoption”; “Beauty Food – Taste the Glow”; “Food Culture – Tradition Reinvented”; “Mood Food – Mindful Choices”; and “AI – Bytes to Bites”.

Private Label Sales Rose 3.9% in 2024 to Record $271 Billion
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FOR IMMEDIATE RELEASE
Contact: press@plma.com

Private Label Sales Rose 3.9% in 2024 to Record $271 Billion


NEW YORK (January 16, 2025) - Sales of store brands increased $9 billion to a record $271 billion last year compared to 2023, according to PLMA’s latest Circana Unify+ data.

This represents a 3.9% rise in dollar sales in all outlets from Jan. 8 to Dec. 29, 2024, versus the same period in 2023. Private label growth outpaced national brands, which grew 1% in dollar sales.

Sales of store brands hit a record high last year,” said PLMA President Peggy Davies. “The quality, value and innovation that store brands provide can’t be beat.”

Over the past four years, annual store brand dollar sales have increased by over $51 billion, a 23.6% gain. In addition, since 2021, store brand unit sales rose 2.3%, while national brands fell 6.8%.

All 10 food and nonedible departments that Circana tracks showed store brand dollar growth over the year before. Refrigerated (+7.5%), General Food (+4.3%) and Beverages (+4%) had some of the highest growth. In unit sales growth, the top departments were Beverages (+3.5%), Pet Care (+3.5%) and Home Care (+3.3%).

More detailed insights and information, including top category sales and monthly trends, will be revealed in PLMA’s 2025 Private Label Report, which will be released in February.

The news of the record $271 billion in store brand sales comes during the January debut of Store Brands Month, which salutes the availability and quality of store brands across all retail channels.

About PLMA

The Private Label Manufacturers Association (PLMA) is a non-profit trade organization founded in 1979 to promote the store brands industry. With executive offices in New York and International Council offices in Amsterdam, PLMA represents more than 4,500 member companies worldwide. In addition to the Annual Private Label Trade Show in Chicago and its World of Private Label International Trade Show in Amsterdam, PLMA provides annual conferences, executive education and professional development opportunities. Follow PLMA on plma.com, plmainternational.com, and on social media:

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Consumers feel sorry for a lonely banana

Researchers from German universities have found out that customers are more likely to pick up an individual banana, often left as a result of people tearing others from the bunch, if they are emotionally triggered.

The academics placed a sign in front of orphan bananas (individual bananas left as a result of people tearing others from the bunch) saying “we are sad singles and want to be bought as well”. On average, sales in single bananas went to 3.19 with the sad sign – an increase of 58%.

The researchers carried out the experiment in a major German supermarket chain, observing the purchasing behaviour of 3,810 customers over the course of 192 hours.

No more than 20 seconds to influence a buyer

The average time a consumer spends in front of the shelves is very short: between 4 and 20 seconds. Purchase decisions are quick and instinctive and are driven mainly by emotion rather than rationally.

Research by Professor Vincenzo Russo, IULM University, Milan shows how quick and instinctive purchase decisions are, driven mainly by emotion rather than rationality. The brain tends to trick us and create a kind of bias in our perceptions. The packaging, its colour or shape, the appearance of the product and many other factors can influence our perception in a way that is sometimes different from reality.

At PLMA’s upcoming Packaging conference on 30 January in the Hague, Steen Tjarks, President & Co-founder of design agency Tjarks & Tjarks will dive into the topic of “Psychology of Packaging: How Design Drives Consumer Decisions -  Look, Feel, Buy: The Power of Design in Consumer Choice for Private Brands”. For more information click here.

 

Challenges to Change Avoidable Plastic in Food Packaging

According to a recent study by DS Smith and consumer research institute Retail Economics, almost half of the food packaging in German supermarkets consists of avoidable plastic. But changing the packaging is proving difficult: despite growing awareness, industry efforts to shift towards sustainable solutions are hindered by competitive concerns and consumer behaviour.

Key barriers include the cost of raw materials, which 40% of respondents cited as the primary hurdle. Consumer acceptance poses another challenge: 39% of industry experts are concerned that customers may resist changes to packaging.

The study reviewed 1,500 food and beverage packaging samples across major supermarkets in Germany, France, Italy, Poland, and Spain, finding that a substantial portion of packaging could be replaced or eliminated to significantly reduce plastic waste.

European plastic consumption remains considerable, with the UK topping the list at 

70% of food packaging comprising plastic, followed by Spain (67%), Germany and Italy (66%), Poland (62%), and France (59%).

The Growth of Private Labels in Europe Will Continue

A new PLMA study entitled "European Retailers & Manufacturers Talk About the Future: What will the private label landscape look like in the next five years?", reveals that nine in 10 private label manufacturers and retailers say that the success of private label will continue going forward. 

"Given that the share of private labels in Europe is already the highest at 39 percent of the entire food market, the reaction of experts in the industry is generating great optimism among all private label players," said PLMA President Peggy Davis.

With the optimism, there are also challenges, and day-to-day operational issues, not competitive ones, appear to be the biggest issue for both players, manufacturers and retailers. Geopolitical unrest and climate change are putting pressure on the supply chain and on the consistent quality and availability of raw materials and ingredients. Also, finding skilled personnel is a concern and could get in the way of the companies’ expected growth forecast.

The study was built on a survey, conducted between June and August, among 1,017 executives from 865 private label manufacturers and retailers in 37 European countries. For more information contact Judith Kolenburg at kolenburg@plma.nl.

Retailer apps in Germany are widely used, save money

A study by the consulting firm Simon-Kucher reveals that 80% of customers in Germany already use retailer apps, with this figure reaching as high as 96% in the drugstore sector. The survey, which involved 1,000 consumers, explored how app usage influences shopping behaviour.

The primary motivation for using these apps is saving money. Over three-quarters of respondents (83.2%) said the apps make them more aware of discounts, while 73.1% reported that they are able to make cheaper purchases through the apps. About half of the participants indicated that they shop more frequently and in greater quantities using retailer apps. Additionally, most respondents noted that the apps improved the efficiency of their shopping experience and overall satisfaction.

These apps also encourage users to explore new products. Features like product recommendations (55.7%) and discounts (64.4%) prompt users to try new items, although discounted products tend to be added to carts more often than those simply suggested by the app.

In terms of in-app purchase incentives, personalized discount coupons on specific items, volume discounts, free products, and bonus points were the most favoured. In contrast, digital flyers and competitions were significantly less appealing to users.

2025 food and drink trends revealed

Mintel has published its global food and drink trends report for 2025. The researchers explored what it is that influences consumer behaviours and attitudes toward food and drink. The experts predict that four topics will prevail for consumers:

Fundamentally nutritious. The emergence of weight-loss medications like Ozempic will redefine consumer perceptions of ‘food as medicine’ from added functional ingredients to meeting daily essential nutrient needs.

Rule rebellion. Embrace consumers as ‘perfectly imperfect’ beings who are hungry for brands that help them ‘break the rules’ in food and drink.

Chain reaction. As disruptions to the food supply become more frequent, the industry will need to encourage consumers to accept and trust the new origins, ingredients and flavours that will emerge locally and globally.

Hybrid harvests. Food and drink companies will need to demonstrate how technology and agriculture work together to benefit consumers, farmers and the environment.