Private label brands saw double-digit sales growth and strong unit volumes in 2020 as the COVID-19 pandemic lifted grocery sales, the Private Label Manufacturers Association ( PLMA) said recently. But store brands’ market share remained stable as national brands gained ground.
99% of American households buy private label brands
Data shows that private label sales in the United States totaled $158.8 billion in 2020, up 11.6% from $142.3 billion in 2019. National brands grew slightly, from $587.4 billion the previous year to $657.2 billion in 2020, an increase of 11.9%.
Despite the dramatic changes brought on by the coronavirus crisis, private label brands still account for about one-third of every four consumer packaged goods (CPG) items sold in these retail channels and about one-fifth of every five dollars spent.
So far in 2020, COVID- related retail impacts have ranged from panic buying by shoppers in the early months (leading to ongoing supply chain disruptions in high-demand categories) to socially distanced in-store shopping and a near doubling of year-over-year online sales.
Survey data shows that 99% of American households purchased private labels last year . Nationwide lockdowns and restaurant closures have also triggered a major shift in consumer purchases from food services to grocery stores as Americans adjust their lifestyles to remote schools and workplaces.
Paper products are the highest-selling category
Across all retail channels, household paper and plastics became the largest private label category in 2020, reaching $10.7 billion, or 37.4% of the total category, largely due to the increased use of toilet paper , paper towels , napkins , facial tissue, and disposable plates , cups, and utensils during the early stages of the COVID-19 pandemic .
In 2020, store brands will account for 23% of all grocery dollars and 25% of units sold, including sales from retailers not captured in point-of-sale scanning data. Those figures also include about $40 billion in private-label sales from shoppers at leading clubs, discounters and other retailers with extensive private-label programs.
In general, the habits of American consumers have also changed with the COVID-19 pandemic. Private brands are becoming more and more popular among consumers, and sellers also need to pay close attention.
GMV Private Label market share |
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