Market Research

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

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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:

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.

In EU, Germans spend the least on food

According to a study by NIQ, consumers in Germany spend less of their income on food, health and care than in any other EU country. Despite the increase in prices, the share of these expenditures in private consumption last year was 13.4 percent, lower than in all other 26 countries.

Consumers have recently been paying more attention to prices and taking advantage of offers more often. According to NIQ, Germany recorded the strongest increase in promotion purchases in Western Europe, with an increase of 14 percent.

The share of retail in private consumption fell again in the EU in 2023. According to market researchers, this is due to a normalization of consumer behavior. During the Corona pandemic, consumers spent their money mainly in retail because cultural activities, events and travel were often not possible.

One in two European households owns a pet

A survey among 36,000 participants in 10 European countries reveals that half of the households own at least one pet. The average age of pet owners is 46 years.

Cats are the favorite animals in Germany, Austria, Switzerland, France and Belgium. Special mention goes to France, which is the European country with the most domestic cats among pet owners (71%). Dogs are more popular in Poland, Hungary and Denmark.

Study reveals 2% of retail & wholesale emissions are in sector’s control while 98% is tied to Scope 3

A joint study by Oliver Wyman and EuroCommerce, which examines the carbon footprint of the European retail and wholesale value chains, revealed that 98% of the European retail and wholesale sector’s carbon emissions are derived from Scope 3 emissions. Only 2% make up the sector’s Scope 1 and 2 emissions as a result of direct operations or energy consumed. In contrast, Scope 3 emissions are indirect and result from activities by producers and manufacturers along value chains, as well as the energy consumed after the purchase of a product.

While some retailers and wholesalers have made significant progress tracking and reducing emissions – especially Scopes 1 and 2 – the findings highlight the need for the sector to step up the efforts at the company, sector and value chain level to achieve net zero. It demonstrates the critical need to align further on a European and industry- wide methodology to quantify Scope 3 emissions and to identify where they can be reduced.