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The private label food and beverages market size is projected to increase by USD 183.04 billion, at a CAGR of 6.64% between 2023 and 2028. The private label food and beverages market holds a prominent position in the global market, and it is deeply ingrained in consumer lifestyles. Increasingly viewed as a viable alternative to established brands, private labels are witnessing growing demand across various countries. Moreover, the Europe region, serves as a robust model for private label brand development, with retailers investing significantly in brand building. These retailers offer premium choices across price points, available through both online and offline channels. However, in this region, the major markets include the UK, France, Spain, Germany, and Italy. Notably, Switzerland, Spain, the UK, Germany, Belgium, and Portugal, among others, lead in private label food and beverage sales compared to established brands. Retail giants like Carrefour, Edeka, Tesco, and Schwarz are key players. Key offerings from Aldi Stores Ltd. feature diverse private label brands like Appleton Farms, Aunt Maples, Barissimo, Belmont, Benner, Berryhill, and more. The market exhibits a promising growth trajectory, offering convenience and catering to evolving consumer trends on a global scale.
The market shows an accelerated CAGR during the forecast period.
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The market for private label beverages spans a diverse array of retail channels, catering to consumer preferences across offline and online channels. General merchandise retailers, food and drink specialists, department stores, and e-retailers all play crucial roles in distributing these products, which encompass everything from bakery products and cereals to meat, eggs, and seafood. Consumers also find eggs, salads, prepared foods, condiments, gravies, and sauces readily available alongside general food items, savory snacks, confectionery, and soup in supermarkets and convenience stores. Beverages such as water, juice, and carbonated drinks are staples in these outlets, reflecting shifting consumer preferences towards healthier options and convenient packaging formats. This dynamic market landscape underscores the importance of catering to diverse consumer needs through strategic placement and innovative product offerings across various retail channels.
Increasing dollar value share of private label brands is notably driving the market growth. The dollar value share of private label brands, including food and beverage and beauty and personal care products. A major share of this market research and growth is contributed by private label food and beverages. Competitive pricing and easy availability are the major factors driving the sales of private label food and beverage products. Private label brands are reaping more benefits in terms of the dollar value of sales due to factors such as increasing premium and specialty product offerings. As a result, several private label vendors operating in the US registered strong market growth in 2023.
Factors such as perceived high quality and lower price than other national brands are fueling the sales of Kirkland Signature products in the US. Costco Wholesale Corp. also emphasizes its business strategy, such as high-quality merchandise at a much lower price than other national brands. This encourages consumers to confidently purchase their private label products. Consumers are more inclined toward convenient shopping rather than searching for a national brand that is available in a distant store. This shift in consumer buying patterns is expected to continue during the forecast period.
Integration of technology to create a collaborative retail business network is an emerging trend shaping market growth. Private label vendors need to collaborate with food manufacturers and suppliers to deliver profitably as per consumers' requirements. Such consumer-centric collaborations reduce the supply chain cost and improve customer experience. It also helps private label vendors to make decisions based on data-driven insights. For instance, to attract consumers, trading partners need intelligence and deep insights into shopper behaviors, needs, and buying patterns. Capturing (savvy shoppers) consumers' data helps trading partners gain visibility, analyze their target markets, and make better decisions. For instance, Trace One is a software company that offers Trace One Network. This software connects retailers and suppliers to develop innovative private label products and ensure consumer trust.
As a result, the integration of such collaborative retail business technology helps maintain a connected business network among private label vendors and manufacturers/suppliers. The competition in the global private label food and beverage market is intensifying with the increase in the number of private label brands. Hence, all stakeholders need to build a sustainable relationship among themselves to gain a competitive advantage. These factors will accelerate the growth of the market during the forecast period.
The limited possibility of innovation by retailers is a significant challenge hindering market growth. National and well-established brands have greater financial capabilities and resources to spend on R&D. Thus, new product development is primarily led by brand leaders. These manufacturers have high technical knowledge and are more capable of introducing products in the market, whereas private label brands wish to take a lesser risk in introducing new products and usually do not promote innovative concepts from their suppliers. Moreover, consumers believe that national brands are more innovative than private label brands.
Further, many food and beverage private label retailers have stated that they are usually fast followers of the products that are launched by well-established brands and can imitate the products made by the brand leaders quickly. This is because the introduction of new variants altogether takes a longer time and requires huge investments in terms of R&D costs. Such factors are expected to limit the market growth during the market growth.
The private label food segment encompasses a diverse array of products, including whole foods, processed foods, frozen foods, chilled foods, sweets, snacks, bakery items, ready-to-eat meals, ice creams, dried processed foods, confectioneries, snack bars, and specialty foods like gluten-free, non-GMO, and organic options. Market vendors are increasingly focusing on premiumizing private-label foods and expanding product offerings in specialty categories. Aldi Stores Ltd. exemplifies this market trends and analysis with its Specially Selected brand, offering premium dairy, frozen foods, pantries, snacks, and sweets. Similarly, The Kroger Co. presents premium selections through brands like Simple Truth and Private Selection, catering to consumer preferences for organic and high-quality food products in the US. This strategic emphasis on premium and specialty items enhances brand trust and image, especially in the growing market for private-label organic foods during the forecast period.
The market share growth by the offline segment will be significant during the forecast period. Supermarkets, hypermarkets, grocery stores, hard discount stores, dollar stores, and convenience stores are the major offline distribution outlets that sell private label food and beverages in the US. The rapid geographic expansion of private label vendors across the US is a major factor driving the offline segment.
The offline segment was the largest and valued at USD 295.90 billion in 2018.
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In addition, grocery and convenience stores provide additional facilities such as virtual payment methods and off-premises ATMs. Due to these additional facilities provided, grocery and convenience stores have a more diverse consumer base. Hard discount stores are the other major distribution channels for private label food and beverage products in the US. These stores generally provide just one national brand for each category, while a range of private label versions at a lower price. Hence, private label brands have better shelf space and visibility in hard discount stores. These offline distributors are also involved in service delivery innovations such as same-day delivery and other promotional offers. As a result, the offline segment is expected to register an accelerating year-over-year growth rate, which, in turn, will drive the market during the forecast period.
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Europe is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The market has become an important staple in consumers' lifestyles. People consider private labels as an ideal substitute for well-established branded products. The demand for private labels is increasing in most countries. The region has been providing a strong and reliable model for developing private label brands. Some of the retailers have been spending extensively on brand building and promoting their products. These retailers have also been providing their customers with premium offerings at all price points. These products are available through both online and offline channels.
In addition, retailers such as Carrefour SA, Edeka Zentrale Stiftung, Tesco Plc, and Schwarz Unternehmenskommunikation GmbH and Co. KG are some of the most popular and leading vendors of private label food and beverage products in the region. The key reason behind the growth is the changing consumer opinion about private label products. Maximum Europeans consider private labels as a substitute for well-established brands. The steady growth of the market is also because of the high visibility of these brands. Thus, this would help the market to grow with an accelerating growth rate during the forecast period.
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 forecasting growth and analysis.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including Aldi Stores Ltd., Amazon.com Inc., Carrefour SA, Costco Wholesale Corp., Dollar General Corp., EDEKA ZENTRALE Stiftung and Co. KG, Giant Eagle Inc., Giant of Maryland LLC, Hy Vee Inc., Koninklijke DSM NV, Reliance Industries Ltd., Schwarz Unternehmenskommunikation GmbH and Co. KG, Sobeys Inc., Target Corp., Tata Sons Pvt. Ltd., Tesco Plc, The Kroger Co., Trader Joes, Walmart Inc., Wegmans Food Markets, SouthEastern Grocers LLC, United Natural Foods Inc., and HEB LP
The market analysis and report of 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 research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The relays market is experiencing robust growth across various channels including offline and online distribution. Private label beverages are gaining popularity in supermarkets and hypermarkets, carries, and warehouse clubs, where consumers seek clean label products across categories like bakery products, cereals, dairy products, yogurt, and ice cream. The market also extends to baby food, meat, eggs, and seafood, including poultry, eggs, and fish, along with condiments and sauces, deli dressings, and prepared foods. Consumers are increasingly focused on product quality and health benefits, driving demand for private-label food and beverages in both online food delivery systems and traditional retail settings. Premium private-label products are witnessing inaugurations of different products, supported by stringent labeling requirements and innovations in processed food, coffee, tea, bottled water, juices, carbonated beverages, sports, energy, and functional drinks, as well as alcoholic drinks. This dynamic landscape underscores the evolving preferences and opportunities within the global relays market.
Private Label Food and Beverages Market Scope |
|
Report Coverage |
Details |
Page number |
163 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.64% |
Market Growth 2024-2028 |
USD 183.04 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.13 |
Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
Performing market contribution |
Europe at 38% |
Key countries |
US, Canada, China, India, and Switzerland |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aldi Stores Ltd., Amazon.com Inc., Carrefour SA, Costco Wholesale Corp., Dollar General Corp., EDEKA ZENTRALE Stiftung and Co. KG, Giant Eagle Inc., Giant of Maryland LLC, Hy Vee Inc., Koninklijke DSM NV, Reliance Industries Ltd., Schwarz Unternehmenskommunikation GmbH and Co. KG, Sobeys Inc., Target Corp., Tata Sons Pvt. Ltd., Tesco Plc, The Kroger Co., Trader Joes, Walmart Inc., Wegmans Food Markets, SouthEastern Grocers LLC, United Natural Foods Inc., and HEB LP |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, 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 report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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