Bamboo Rose Blog | Retail News

PLMA: Private Brands Maintain Steady Growth, Topping $15B in 2020

Private brand sales have risen steadily over the past few years, topping a record $15 billion in 2020 and accounting for 23 percent of all units sold last year according to PLMA’s 2021 Private Label Yearbook.

NielsenIQ calculated this figure based on all outlets combined, including US supermarkets, drug stores, and mass, club, and dollar channels. One in every five dollars spent by shoppers in outlets last year went to private brands, noted My Private Brand in a recent article.

“Analysis needs to take these anomalies of the 2020 data into account, but comparisons to pre-pandemic trends and projections notwithstanding, store brands maintained their well-established position in the marketplace, as retailers and private label manufacturers succeeded in supplying the country with critical food and essential non-food products in the face of extreme volatility,” said PLMA President Peggy Davies. “The 2020 sales figures bear that out.”

Private brands saw an increase of more than 12 percent in sales overall, which is in line with sales growth for national brands over the past year. This growth occurred in the midst of several supply chain disruptions, as well as overall shifts in the way consumers buy products. Since the start of the pandemic, more consumers have started utilizing online buying channels for groceries to reduce face-to-face interactions and maintain social distancing best practices.

Private brand sales were particularly high for US supermarkets, with sales increasing by 13.2 percent over the same time in the year prior to a record $27.3 billion in 2020.

The notable uptick in private brand sales in recent years underscores the need for food and formulated retailers to optimize their private brand strategy. Bamboo Rose’s latest white paper, “Key Steps for Advancing Grocery Private Brands,” offers tips for food retailers looking to drive market differentiation and customer loyalty through their private brand.

Find out how you can take your private brand strategy to the next level through product innovation, supply chain visibility, sustainability initiatives, and more.