Store Brand Sales Surge 11.3% to $228.6 Billion, PLMA Finds
Private brand sales hit a new record last year, jumping 11.3 percent to a whopping $228.6 billion in all outlets in the US for the 52 weeks ending January 1, 2023 versus the prior year, according to the Private Label Manufacturers Association (PLMA).
Store brands performed so well that they grew at nearly twice the rate of national brands, which were up 6.1 percent in dollar sales, according to PLMA’s exclusive IRI Unify sales data. The findings are published in PLMA’s just-released 2023 Private Label Report, available here.
“The store brands business is booming,” said 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, nonfoods, household goods and many other categories.”
Dollar share increased to 18.9 percent, up from 18.2 percent in 2021. Unit share grew to 20.5 percent, from 19.9 percent.
A major reason for the double-digit surge was that the inflationary environment motivated more shoppers to try, buy, like and remain loyal to store brands because of the quality and value they provide.
Last year’s impressive performance also comes at a time of heightened private brand innovation in areas like health and wellness, sustainability, convenience, indulgence and more. The industry has successfully introduced new product lines, expanded existing lines, and launched impactful marketing and promotional programs. While private brand unit sales slipped 1 percent in 2022, they outperformed national brand unit sales, which dropped -4.1 percent.
Of the 17 departments IRI tracks, 16 showed store brand growth. Numerous categories even had double-digit sales gains. The fastest-growing segments are beverages, up 19 percent to $12 billion; deli-prepared foods, 17 percent to $5.9 billion; refrigerated foods, 17 percent to $47.4 billion; liquor, 15.6 percent to $62 million; general food, 14 percent to $38.6 billion; floral, 13.5 percent to $883 million; bakery, 12.6 percent to $8.4 billion; produce, 11.9 percent to $13.5 billion and deli meat, 10 percent to $1.7 billion.
Strong sales were also reported in general merchandise, up 9 percent to $27.7 billion; frozen foods, 8.2 percent to $17.7 billion; deli cheese, 5.5 percent to $754 million; meat, 5 percent to $26.5 billion; health care products, 3 percent to $17.6 billion, beauty, 2.7 percent to $3.7 billion; and homecare, 2 percent to $2.7 billion.
The only category that saw a sales decline was tobacco – not surprising at a time of declining cigarette use.
The outlook for 2023 looks just as promising, as shoppers continue to make store brands their brand of choice.
“When it comes to quality, value, taste and performance, store brands can’t be beat,” Davies said.