Private Label Consumers Came for Price, Stayed for Quality

Billy Roberts

September 16, 2024

Shopping cart

Key Points

  • Dollar sales of private label products have grown more than a third since 2019, likely surpassing $250 billion in 2024 and representing roughly 20% of basket share, per Nielsen.
  • COVID-era shortages and the more recent inflationary environment both prompted consumer trial of private label products.
  • Consequently, quality perceptions of private label foods have improved considerably since the last surge in usage, around the time of the 2008 recession, likely equating to greater staying power for private label in grocery baskets in the long term.
  • Aldi and Trader Joe’s lead large U.S. retailers in private label purchase share with 80% and 69%, respectively, but private label options account for more than a quarter of grocery sales at Costco, Sam’s Club, H-E-B and Walmart.
  • Private label dollar and unit sales will likely remain above their pre-inflationary/pre-pandemic levels, as the quality perception of private label has increased and store brands have added options more in-line with demands of younger and more-affluent consumers.

Read the Report

 
 

Stay ahead of the game in your field. Subscribe today.

Get CoBank's industry-leading Knowledge Exchange research reports delivered straight to your inbox as soon as they're released.

Have a comment or question about these reports?

Contact CoBank's Knowledge Exchange team to ask questions, engage with analysts or receive additional information.