Market leaders consistently lose ground to private label brands

Market leaders consistently lose ground to private label brands

Growing Trend of Private Label Products in 2025

Private label products have taken the grocery landscape by storm in 2025, significantly outpacing national brands in sales and market share, according to a report by the Private Label Manufacturers Association (PLMA) and insights firm Circana.

In the first half of 2025, private label dollar sales increased by 4.4%, while national brands only saw a 1.1% increase. This trend is further evident in unit sales, where private labels grew by 0.4%, compared to a 0.6% decrease for national brands [1][2][4].

The growth of private labels has led to an all-time high in market share. Private labels now account for 21.2% in dollar share and 23.2% in unit share of the market [1][2][4]. Key contributing categories for this growth include refrigerated foods (up 10.5%), beverages (4%), frozen foods (2%), and general food (2.5%) [1][2][4].

The PLMA projects total private label sales to approach $277 billion in 2025, surpassing the 2024 record of $271 billion [1][2][4].

Peggy Davies, president of PLMA, emphasized that this growth reflects consumer recognition of the "unbeatable combination of quality, value, and innovation" in store brands [1][2][4]. Private labels have evolved from being perceived as lower-tier alternatives to national brands into competitive offerings with strong consumer loyalty. Studies show 84% of consumers trust private label quality as much as or more than national brands, and nearly half of those who switch to private labels remain loyal if satisfied [3].

However, perception varies by income, with higher-income consumers still somewhat image-conscious about private label purchases [3].

Retail giants like Albertsons Cos. and Target Corp. are capitalizing on this trend. Albertsons Cos. has announced the addition of a Chef's Counter own brand, which includes ready-to-cook marinated meats, just before the summer grilling season. Target Corp., on the other hand, has expanded its private label offerings this summer, introducing new items such as Favorite Day hot chili lime popcorn, Favorite Day peach cobbler ice cream, Good & Gather Strawberry Banana Yogurt Pouches, and more [1][2][4].

Sales of private label products have been particularly strong in the refrigerated food, beverages, frozen foods, and pet care categories [1][2][4]. This growth is noteworthy given the turbulence in the Consumer Packaged Goods (CPG) industry, with private label products leading to M&A activity and bankruptcy filings [1][2][4].

In the Summer Fancy Food Show in NYC, purveyors leaned into global flavors, health and wellness, clean ingredients, functionality, and more, but specific trends were not detailed [5]. Meanwhile, Dollar Tree has completed the sale of a banner that will be led by legendary retail exec Duncan MacNaughton, but no further details about the new company were provided [6].

References: [1] PLMA and Circana. (2025). Private label sales surge in 2025. Retrieved from https://www.plma.com/news/private-label-sales-surge-2025 [2] Supermarket News. (2025). Private label sales surge in 2025. Retrieved from https://www.supermarketnews.com/private-label/private-label-sales-surge-2025 [3] Nielsen. (2025). Consumer perception of private label products. Retrieved from https://www.nielsen.com/us/en/insights/article/2025/consumer-perception-of-private-label-products/ [4] Food Dive. (2025). PLMA: Private label sales surge in 2025. Retrieved from https://www.fooddive.com/news/plma-private-label-sales-surge-in-2025/608609/ [5] The Shelby Report. (2025). Summer Fancy Food Show in NYC features global flavors, health and wellness, clean ingredients, functionality, and more. Retrieved from https://www.theshelbyreport.com/news/2025/06/summer-fancy-food-show-in-nyc-features-global-flavors-health-and-wellness-clean-ingredients-functionality-and-more/ [6] Reuters. (2025). Dollar Tree completes sale of banner led by Duncan MacNaughton. Retrieved from https://www.reuters.com/business/retail-consumer/dollar-tree-completes-sale-banner-led-by-duncan-macnaughton-2025-07-01/

1. Businesses in the finance sector are closely monitoring the significant growth in the private label market, with private label sales projected to reach approximately $277 billion in 2025, surpassing the previous record.
2. As private label products continue to outperform national brands, finance institutions are recognizing the potential for investment in this thriving business sector, given the increasing market shares (21.2% in dollar share and 23.2% in unit share) of private labels in various categories such as refrigerated foods, beverages, frozen foods, and more.

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