The Latest Private Label Industry Statistics Explained
Private label market share in the U.S. reached 19.3% in 2019
The statistic ‘Private label market share in the U.S. reached 19.3% in 2019’ indicates that store brands, also known as private label brands, captured 19.3% of the total market share for consumer goods in 2019. This figure represents the proportion of sales volume or revenue generated by private label products compared to all branded products in the U.S. market during that year. A higher private label market share suggests that consumers are increasingly choosing store brands over traditional name brands, which may be attributed to factors such as competitive pricing, quality improvements, and changing consumer preferences. The growth in private label market share can have implications for both retailers and manufacturers in terms of pricing strategies, product differentiation, and overall market competitiveness.
Grocery chains with strong private label brands are profitable, with operating margins of up to 35%.
The statistic suggests that grocery chains who have developed robust private label brands tend to be profitable, citing operating margins that can reach as high as 35%. This indicates that the sales of these private label products contribute significantly to the overall profitability of the grocery chains. Strong private label brands can help grocery chains differentiate themselves from competitors, attract and retain customers, and potentially achieve higher profit margins compared to selling only branded products. The implication is that investing in developing and promoting private label brands can be a successful strategy for grocery chains to increase profitability and maintain a competitive edge in the market.
81% of European consumers buy private label products weekly.
The statistic stating that 81% of European consumers buy private label products weekly indicates a high prevalence of purchasing behavior towards store brands among consumers in Europe. This statistic suggests that the majority of European consumers are actively choosing private label products over national or branded products on a weekly basis. The willingness to purchase private label products frequently could be influenced by various factors such as perceived value for money, product quality, or brand loyalty towards store brands. This high rate of adoption of private label products highlights the significance and popularity of store brands in the European consumer market, reflecting a strong consumer preference for these products in their shopping habits.
Private label penetration rate globally was 16.5% in 2017.
The private label penetration rate globally in 2017 indicates that private label products accounted for 16.5% of total retail sales across various markets during that year. This statistic suggests that a significant portion of consumers were opting for private label brands over traditional national brands, indicating a growing trend towards private label products. A higher penetration rate can be indicative of factors such as economic conditions, changing consumer preferences towards value for money, and the perceived quality of private label products. This statistic serves as a key indicator of the market share and competitiveness of private label brands in the retail industry on a global scale.
Despite pandemic challenges, private label brands grew 4.1% in 2020.
The statistic “Despite pandemic challenges, private label brands grew 4.1% in 2020” indicates that despite the widespread economic disruptions and changing consumer behaviors caused by the COVID-19 pandemic, private label brands experienced a positive growth of 4.1% in 2020. This growth suggests that consumers may have turned to private label brands as a more affordable option during uncertain times, or that they were drawn to the quality and value offered by these brands. The resilience and growth of private label brands in the face of the challenges brought on by the pandemic highlights the strength and appeal of these offerings in the marketplace.
In the online market, private label has grown 33% year on year, compared with 27% for branded products.
The statistic indicates that in the online market, the growth rate of private label products has outpaced that of branded products, with private label products growing at a rate of 33% year on year while branded products have grown at a slightly lower rate of 27%. This implies that consumers are increasingly turning to private label products, potentially due to factors such as lower prices, perceived quality improvements, or the availability of a wider range of choices. The data suggests that private label brands are becoming a more prominent and competitive force in the online market, challenging traditional branded products and indicating shifting consumer preferences and buying behaviors.
Sales of private label within brick and mortar stores rose by 0.4% to $136 billion in 2019.
The statistic indicates that the sales of retailer-owned private label products in physical store locations increased by 0.4% to reach a total revenue of $136 billion in the year 2019. This suggests that private label brands offered by brick and mortar stores experienced some growth in consumer demand, potentially due to factors such as competitive pricing, product quality, or branding strategies. The rise in sales reflects the popularity and success of private label products within the traditional retail sector, highlighting the significance of these store-owned brands in capturing market share and driving revenue within the industry.
Private label penetration is the highest in the UK at 46%, followed by Spain at 42% and France at 30%.
The statistic indicates the level of private label penetration in the UK, Spain, and France, with the highest penetration observed in the UK at 46%, followed by Spain at 42% and France at 30%. Private label penetration refers to the market share held by store brands or products owned by retailers themselves, as opposed to national or international brands. A high penetration rate suggests that a significant portion of consumer purchases in these countries are of private label products. This could be driven by various factors such as consumer perception of quality, pricing, or retailer marketing strategies. The data highlights the popularity and competitiveness of private label products in these European markets, with the UK leading in this trend.
Private label sales have grown 40% in the past five years, which is four times the growth of national brands.
The statistic indicates that private label sales have experienced a significant growth rate of 40% over the past five years. This growth is particularly noteworthy as it is four times higher than the growth rate of national brands during the same period. This suggests that consumers are increasingly gravitating towards private label products over traditional national brands. The faster growth of private label sales may be influenced by factors such as changing consumer preferences for value and quality, increased availability of private label offerings, and a growing emphasis on store brands by retailers. This trend highlights the competitive landscape within the retail industry and the shifting dynamics of consumer purchasing behavior towards private label products.
More than 3 in 4 (76%) US adults shop private-label brands to save money.
The statistic ‘More than 3 in 4 (76%) US adults shop private-label brands to save money’ indicates that a significant majority of American adults choose to purchase private-label or store-brand products as a cost-saving measure. This data suggests that roughly 76% of adults in the United States are prioritizing budget-conscious decisions when it comes to their shopping habits. Private-label brands typically offer lower prices compared to name-brand products, allowing consumers to stretch their dollars further. This statistic reflects a common strategy among consumers to be financially prudent and seek out more affordable options in their everyday purchases, demonstrating a widespread trend of prioritizing savings in the retail landscape.
Nearly half (45%) of British adults see private label brands as good as name brands.
The statistic indicates that a significant proportion of British adults, specifically 45%, perceive private label brands to be of similar quality to well-known name brands. This suggests that a large portion of consumers in the British market place value on the quality and value offered by private label products, which are typically manufactured and sold by a retailer under their own branding. The statistic suggests that private label brands have gained credibility and trust among consumers, who believe that these products can deliver comparable quality to more established name brands. This perception is likely to influence purchasing decisions and reflects a growing trend towards consumer acceptance and preference for private label brands in the marketplace.
The private label market in India is projected to grow by 18-20% annually.
The statistic that the private label market in India is projected to grow by 18-20% annually indicates a significant potential for expansion in the retail sector. Private label products are those manufactured by a third party but sold under a retailer’s brand name. This projected growth rate suggests increasing consumer acceptance of private label offerings and a shift towards more cost-effective and customizable products. The expansion of the private label market can be attributed to factors such as changing consumer preferences, increasing competition, and a desire for value for money. Retailers and manufacturers can leverage this trend by investing in product development and marketing strategies to capitalize on the growing demand for private label goods in India.
As of 2020, about 33% of consumers are buying more private label than the year before.
The statistic indicates that as of 2020, approximately one-third (33%) of consumers are purchasing more private label products compared to the previous year. This suggests a growing trend among consumers towards choosing store-specific or generic brands over traditional name-brand products. This shift could be attributed to various factors such as cost savings, perceived quality improvement in private label products, or changing consumer preferences. The increase in private label purchases may have implications for both retailers and manufacturers as they adapt their marketing strategies and product offerings to cater to this changing consumer behavior.
98% of U.S shoppers purchase private label products during half or more of their shopping trips.
This statistic indicates that a significant majority of U.S shoppers, specifically 98%, buy private label products during at least half of their shopping trips. Private label products are goods that are manufactured and sold by the retailer under their own brand name, often at a lower price compared to national brands. The high percentage suggests that consumers are increasingly accepting and incorporating private label products into their shopping habits, possibly due to factors such as quality improvements, cost savings, and changing perceptions of store brands. This trend highlights the importance of retailers in offering competitive private label options to meet the preferences and demands of their customers, shaping the landscape of the retail industry.
For every 100 products launched in Europe, 17 were private label in 2020.
The statistic “For every 100 products launched in Europe, 17 were private label in 2020” indicates that approximately 17% of all products introduced in the European market in 2020 were private label products. This suggests that private label products are a significant portion of the overall product offerings in Europe. Private label products are typically manufactured by a third-party but sold under a retailer’s brand, offering consumers an alternative to name-brand products. The prevalence of private label products can provide consumers with more choices and potentially lower prices, impacting the competitiveness and dynamics of the retail market in Europe.
Between 2017 and 2020, Asia-Pacific experienced the most private label product launches.
The statistic “Between 2017 and 2020, Asia-Pacific experienced the most private label product launches” indicates that the Asia-Pacific region had the highest number of new private label products introduced into the market during that period. This suggests a growing trend towards retailers creating their own branded products to offer consumers a wider variety of options and potentially increase their profit margins. The increase in private label product launches in the Asia-Pacific region may be driven by factors such as changing consumer preferences, a desire for more diverse and unique products, and a response to competitive pressures in the retail sector. This data implies a shift in the retail landscape towards increased reliance on private label offerings in the Asia-Pacific region during the specified timeframe.
Private label in the U.S. accounted for $153 billion of CPG retail sales in 2020.
The statistic “Private label in the U.S. accounted for $153 billion of CPG retail sales in 2020” indicates the total value of consumer packaged goods (CPG) that were sold under private label brands in the United States during the year 2020. Private label products are those manufactured by one company for sale under another company’s brand. These products often offer competitive pricing compared to national brands and are popular among cost-conscious consumers. The $153 billion figure reflects the significant market share that private label products have gained in the CPG industry, highlighting the strong demand for these types of products among U.S. consumers.
60% of U.S shoppers perceive private label quality to be extremely good.
The statistic “60% of U.S. shoppers perceive private label quality to be extremely good” indicates that a majority of U.S. consumers have a positive perception of the quality of private label products. This finding suggests that private label brands have been successful in establishing a reputation for offering high-quality alternatives to national brands. The high percentage of shoppers expressing this positive perception underscores the growing acceptance and popularity of private label products in the U.S. retail market. This statistic can provide valuable insights for retailers and manufacturers looking to capitalize on the favorable perceptions of private label brands to drive sales and improve consumer loyalty in the competitive retail landscape.
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