Sales of private-label products hit a record high in 2022, rising 11.3% to a total value of $228.6 billion, according to IRI Unify sales data, published in PLMA’s just-released 2023 Private Label Report.
According to the report, store brands grew at nearly twice the rate of national brands, which were up 6.1% in dollar sales terms.
A 'Booming' Industry
“The store brands business is booming,” commented PLMA President Peggy Davies. “Last year’s record sales and double-digit growth reflect the strong consumer demand for store brands. Shoppers are filling their baskets with great-tasting, innovative and high-quality store brand foods, beverages, non-foods, household goods and many other categories.”
According to PLMA, the inflationary situation prompted more shoppers to 'try, buy, like and remain loyal' to store brands, appreciating the value and quality of said products.
The private-label industry has responded in kind with increased innovation in areas such as health and wellness, sustainability, convenience, indulgence and more, PLMA added.
Private brand unit sales slipped 1% in 2022, however they outperformed national brand unit sales, which fell by 4.1%.
Growth In Private-Label Products
Of the 17 departments tracked by IRI, 16 showed growth for private-label products, IRI said.
According to PLMA, the outlook for 2023 looks promising for private-label products, as shoppers continue to migrate to store brands, driven by a strong quality-price ratio.
“When it comes to quality, value, taste and performance, store brands can’t be beat,” Davies added.
Source: PLMA, IRI
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