Private Label Strategy

In 2020, private label products accounted for 52.5 billion units out of the total consumer packaged goods’ sales volume. This represented an increase compared to the previous year, when the private label unit sales amounted to 49 billions.

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In 2020, the market share of private label brands in the United States was 19.5%. Over that year, retail sales of consumer-packaged goods sold under store brands in the United States amounted to around $158.8 billion U.S. dollars, an increase compared to the previous year.

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  • Dollar sales of private label products grew 1% in 2021 to hit a record $199 billion in all U.S. retail channels, according to the just-released 2022 Private Label Report from the Private Label Manufacturers Association (PLMA), based on IRI data.
  • Private brand dollar share last year was 17.7%, while unit share came in at 19.6%. Both represent increases over a three-year period.
  • As the industry headed into 2022, sales of private label products picked up right where they left off at the end of last year, growing 4.2% in dollar volume across all U.S. retailing channels in January, compared to the same period in 2021. The increase was about equal to the 4.4% growth of national brands, according to IRI data provided to PLMA.

Becoming a national brand can be accomplished as a private label or even as an owned brand for a single retailer or several retailers across channels of distribution. This approach cancels the extravagant costs associated with bringing a new brand to market.