Enjoy complimentary customisation on priority with our Enterprise License!
The US private-label food and beverage market size is forecast to increase by USD 43.9 billion at a CAGR of 6.43% between 2023 and 2028. The market is experiencing significant growth, driven by several key factors. One of the primary growth drivers is the increasing dollar value share of private label brands, which is expected to reach 21.5% by 2025. Another trend influencing the market is the rising demand for private label organic food and beverages, as consumers become more health-conscious and seek out natural and additive-free options. However, the market also faces challenges, such as the low penetration of private label food and beverage companies in certain channels, particularly in specialty stores and online platforms.
The private-label food and beverage market in the US is experiencing a rise in popularity due to several factors. High inflation and food supply chain issues have led consumers to seek affordable alternatives, making store brands an eco-friendly and cost-effective choice. The millennial generation, with their eco-conscious shopping behavior, is driving the demand for sustainable choices in food and beverage production. Local product purchasing and hyper-local production are gaining traction as consumers seek to reduce their carbon footprint and support their communities. Retailers are expanding their product ranges to cater to this trend, with a focus on sustainable packaging and food waste reduction.
The shift towards local production and circular economies is also influencing the market, with some retailers exploring the use of autonomous food factories and on-demand production to minimize CO2 emissions and supply chain control. Centralized food production is being re-evaluated as consumers seek eco-friendly choices and greater transparency in their food sources. Branded products are still a significant player in the market, but the trend towards sustainable and locally produced food is changing the game. Consumers are increasingly looking for quality products that align with their values, and retailers are responding by investing in local production and eco-friendly practices.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The Private-label food segment is estimated to witness significant growth during the forecast period. The private-label food and beverage market in the US is experiencing significant popularity, driven by factors such as high inflation and supply chain issues. In response, retailers are expanding their product ranges to include a wider variety of sustainable choices. Hyper-local production and circular economies are becoming increasingly important, with consumers showing a preference for local product purchasing. Millennials, in particular, are driving eco-conscious shopping trends, leading to an increased focus on sustainable packaging and food waste reduction. Private label companies are extending their offerings beyond basic staples, with a growing focus on premium and specialty food items. These include whole foods, processed foods, frozen foods, chilled foods, sweets and snacks, bakery products, ready-to-eat meals, ice creams, dried processed foods, confectioneries, snack bars, and other specialty foods such as gluten-free, non-GMO, and organic offerings.
Companies are also focusing on affordability and income brackets, with some retailers offering trade-down options for budget-conscious consumers. Relationships with retailers are becoming increasingly important as brand awareness and eCommerce platforms drive consumer shopping behavior. Supply chain efficiency, health and wellbeing, and consumer expectations for product quality are also key considerations. Advancements in technology, such as cloud-based ERP systems and big data , are enabling companies to optimize their operations and meet consumer demands for on-demand production and reduced CO2 emissions. Centralized food production and branded products continue to dominate the market, but autonomous food factories and circular production models are gaining traction as consumers seek more eco-friendly choices.
Get a glance at the market share of various segments Request Free Sample
The private-label food segment accounted for USD 65.97 billion in 2018 and showed a gradual increase during the forecast period.
Our market researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing dollar value share of private label brands is the key driver of the market. The private label food and beverage market in the US has gained significant popularity due to various factors, including affordability and consumer confidence in product quality. With high inflation and supply chain issues, retailers have turned to private label brands to offer competitive prices and maintain supply chain control. Sustainability is a growing concern among consumers, leading to a preference for local product purchasing and sustainable choices. Millennials, in particular, are driving the trend towards eco-conscious shopping, with a focus on sustainable packaging and food waste reduction. Local production and autonomous food factories are becoming more common, enabling on-demand production and reducing CO2 emissions.
Retailers are strengthening their relationships with consumers by offering a wide range of product options and ensuring brand awareness through online storefronts and eCommerce platforms. Consumer perceptions and expectations of product quality are evolving, with a growing emphasis on health and wellbeing. Retailers are leveraging cloud-based ERP systems and big data analytics to optimize supply chain efficiency and meet consumer demands. Despite these trends, income brackets continue to play a role in shopping behavior, with some consumers opting for trade down to private label brands due to affordability concerns. Overall, the private label food and beverage market in the US is poised for continued growth, offering retailers a competitive edge through branded products and consumer-centric strategies.
Rising demand for private label organic food and beverages is the upcoming trend in the market. The Private-label Food and Beverage market in the US has experienced significant growth due to shifting consumer preferences towards healthier and more sustainable choices. With increasing concerns over high inflation and supply chain issues, retailers have been expanding their product ranges to include more store-brand offerings. This trend is particularly prominent among millennials, who prioritize eco-conscious shopping and sustainable packaging. Local product purchasing and hyper-local production are also gaining popularity, contributing to circular economies and reducing food waste. As consumers become more income-conscious and seek affordable alternatives, there is a trend towards trade down from branded products to store brands.
Retailer relationships and brand awareness play a crucial role in consumer perceptions of product quality and consumer expectations. E-commerce platforms and online storefronts have made it easier for consumers to access a wider range of organic and locally produced options. The organic nature of raw ingredients in private-label foods and beverages preserves their unique flavors and aromas, making them an attractive choice for health-conscious consumers. Sustainability is a key consideration in the production process, with a focus on reducing CO2 emissions, improving supply chain efficiency, and implementing circular economies. The use of cloud-based ERP systems and big data analytics enables retailers to optimize their supply chain control and meet consumer demands for eco-friendly choices.
The growing awareness of the negative impacts of centralized food production and the desire for more autonomous food factories and on-demand production further underscores the importance of local production in the private-label food and beverage market. Overall, the market is expected to continue growing as consumers prioritize health and wellbeing, sustainability, and affordability in their shopping behavior.
Low penetration of private label food and beverage companies is a key challenge affecting market growth. Private label food and beverage suppliers face intense competition from national brand manufacturers in the US market, with lower penetration rates compared to countries like Switzerland, Spain, and the UK. Factors such as brand awareness, loyalty, and reputation favor national brands. In these European nations, private label brands held a retail value share of 40%-50% in 2021, while in the US, private label retail value sales accounted for only 19% of the total market share. The US market's private label sector is influenced by several trends. High inflation and supply chain issues have led consumers to consider sustainable choices, such as local product purchasing and hyper-local production.
Retailers are responding by expanding their product ranges to cater to eco-conscious shopping behaviors and increasing brand awareness through sustainable packaging and food waste reduction initiatives. Millennials, who prioritize health and wellbeing, are driving the demand for local production, autonomous food factories, and on-demand production. These trends contribute to circular economies and the reduction of CO2 emissions, making supply chain control and eco-friendly choices essential for retailers. Income brackets and shopping behavior also play a role in the private label market's growth. With affordability being a significant concern, retailers are focusing on trade down and strengthening relationships with suppliers.
Consumer perceptions and expectations of product quality are influenced by big data analytics and cloud-based ERP systems, making it crucial for retailers to maintain high-quality standards. The rise of eCommerce and online storefronts further complicates the landscape, necessitating supply chain efficiency and effective branding strategies. As consumers become more conscious of their purchasing decisions, private label food and beverage suppliers must adapt to meet their evolving needs and expectations.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Albertsons Companies Inc. - The company offers a range of private label food and beverage products bearing brands such as Aplenty, Organics, Open Nature, Signature Select, and Primo Taglio.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is experiencing a rise surge in popularity due to several factors. High inflation and supply chain issues have led consumers to seek affordable alternatives, making store brands an eco-friendly and cost-effective choice. The millennial demographic, with their eco-conscious shopping behavior, is driving the demand for sustainable choices, from local product purchasing to sustainable packaging and food waste reduction. Retailers are responding by expanding their product ranges and exploring hyper-local production and circular economies. Centralized food production is being re-evaluated in favor of autonomous food factories and on-demand production to reduce CO2 emissions and improve supply chain control.
Consumer perceptions of brand awareness and product quality are also influencing shopping behavior, with income brackets trading down to affordable, branded products. Ecommerce, cloud-based ERP, big data analytics, and online storefronts are transforming the industry, offering consumers greater convenience, affordability, and transparency. Consumer expectations for health and wellbeing continue to shape the market, with a focus on reducing inflammation and improving overall nutrition.
|
Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
139 |
|
Base year |
2023 |
|
Historic period |
2018-2022 |
|
Forecast period |
2024-2028 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 6.43% |
|
Market growth 2024-2028 |
USD 43.9 billion |
|
Market structure |
Fragmented |
|
YoY growth 2023-2024(%) |
6.29 |
|
Key companies profiled |
Albertsons Companies Inc., Amazon.com Inc., Berner Food and Beverage, Costco Wholesale Corp., Dollar General Corp., Giant Eagle Inc., HEB LP, Hy Vee Inc., Koninklijke Ahold Delhaize NV, LiDestri Food and Drink, Lidl US LLC, SouthEastern Grocers LLC, Target Corp., The Kroger Co., Trader Joes, TreeHouse Foods Inc., United Natural Foods Inc., and Walmart Inc. |
|
Market dynamics |
Parent market analysis, market growth inducers and obstacles,market forecast , fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
|
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
|
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
We can help! Our analysts can customize this market research report to meet your requirements Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Market Segmentation by End-user
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.
