Written by: Jenn Szekely, President
The perception or image of private-label brands has evolved — from being seen as a cheaper or lower-quality alternative to now being viewed as credible products, even outperforming national brands. One in four products sold in the U.S. is now private-label, and a new high for private-label brands was reached in 2022, with sales across retail channels reaching $228.6 billion.
And they’re continuing to grow in popularity – in the first three months of 2023, private labels saw a 10.3% increase in sales, almost twice the gain of national brands. With this growth, more and more private-label brands are diversifying and expanding their portfolios.
A particular area of focus is within the health and wellness sector, with around 50% of consumers now saying that wellness is a top priority in their lives. Everyone has their own perception of wellness and makes food choices according to their individual goals and desires. Recently, many have committed to clean eating and, as a result, the demand for organic food has more than doubled over the last 10 years, with sales reaching $62 billion in 2020.
People are also adopting new diets: plant-based eating has increased, as well as diet trends such as Keto, Paleo, Mediterranean and Whole30. And with these trends come different opportunities for private-label brands. Some are already starting to offer products that accommodate certain diets, such as Kirkland Signature’s Keto-certified snack mix. Other private-label brands include mentions, and some have symbols, signaling these diet trends on their packaging. However, there are other, more impactful steps brands can take to grow their market share across the healthy eating and wellness sector.
Read the full article here to learn more.