Sector Trend Analysis – Private label in the United States

Note: This report includes forecasting data that is based on baseline historical data.

Executive summary

The United States (U.S.) private label packaged food market grew steadily over 2018 to 2022 to US$83.5 billion in 2022 by a CAGR of 7.2%. private label products have a 19.0% market share in the packaged food market, lead by processed fruit and vegetables, edible oils, and dairy.

Excluding dairy, the largest private label category is baked goods with a market size of US$11.8 billion (2022), followed by processed meat, seafood and meat alternatives, processed fruit and vegetables, and savoury snacks. These combined account for close to half of the U.S. private label packaged food market.

The most popular product claims in the U.S. over 2018 to 2022 were Kosher, no/low, gluten free, and free from. Aldi launched the greatest number of products, followed by Kroger and Target. Retailers are embracing wellness and sustainability trends primarily due to increased awareness of climate change and momentum in healthier eating habits that emerged during the pandemic.

Vegetables, seasonings, and bakery products were the sub-sectors with the most private label launches between 2017 and 2021. The bulk of private label launches are made up of new products, new varieties, and new packing. Seasonings had the most new product launches, followed by vegetables, sweet biscuits/cookies. The most common claim made in private label launches are "kosher", followed by "no/low" "free from" "microwaveable" organic, and "ethical", emphasizing health and wellness, convenience, and quality in private label claims.

The share of private label sales in U.S. grocery grew strongly in 2022 as inflation soared and real per capita income shrank. Demand for private label also benefited from retailers' sales tactics like price freezes on store brand (private label) products as well as consumer awareness of national brands' sales tactics, including "shrinkflation", which consists of reducing packaging sizes while maintaining prices, and "skimflation", which consists of diluting products while keeping prices at previous levels.

As inflation is expected to remain high by historical standards, it is expected that consumers will remain price sensitive and seek out private label goods across many product categories and all price tiers, from budget to premium.

 

Market overview

The U.S. private label packaged food market grew steadily over 2018 to 2022 to US$83.5 billion in 2022 by a CAGR of 7.2%. private label products have a 19.0% market share in the packaged food market, lead by processed fruit and vegetables (39.6%), edible oils (36.8%), and dairy (34.3%). Plant based dairy was the fastest growing segment by 14.5%, followed by processed meat, seafood and meat alternatives (12.8%) and edible oils (12.5%). Of these , private label plant based dairy has the most room for growth with a market share of 16.0%.

Excluding dairy, the largest private label category is baked goods with a market size of US$11.8 billion (2022), followed by processed meat, seafood and meat alternatives (US$9.8 billion), processed fruit and vegetables (US$7.3 billion), and savoury snacks (U.S.$5.6 billion). These combined account for close to half (41.3%) of the U.S. private label packaged food market.

private label sales increased faster than branded products in over half of all categories, rising fastest in plant-based dairy (14.5%), processed meat, seafood and meat alternatives (12.8%), and edible oils (12.5%) over 2018 to 2022. The market size gap between private label and branded products is largest in confectionary, baby food, ready meals and soups, and savoury snacks, suggesting highest potential for growth for private label in these categories.

The share of private label sales in U.S. grocery grew strongly in 2022 as inflation soared and real per capita income shrank. Demand for private label also benefited from retailers' sales tactics like price freezes on store brand (private label) products as well as consumer awareness of national brands' sales tactics, including "shrinkflation", which consists of reducing packaging sizes while maintaining prices, and "skimflation", which consists of diluting products while keeping prices at previous levels.

Top private and brand label packaged food categories in the United States inUS$ millions, 2018 to 2022
Categories Market size (Private label) CAGR* % 2018-2022 Market size (Branded) CAGR* % 2018-2022 Private label market share
Baked goods 11,781.5 4.9 71,152.2 6.1 14.2
Savoury snacks 5,635.2 6.2 61,001.8 8.3 8.5
Meals and soups 3,305.8 4.1 53,495.9 7.3 5.8
Dairy 27,106.8 7.9 51,978.2 4.9 34.3
Confectionery 1,112.8 4.8 43,716.0 6.8 2.5
Processed meat, seafood and meat alternatives 9,810.5 12.8 42,997.8 9.0 18.6
Sauces, dips and condiments 5,188.5 6.3 26,323.8 4.4 16.5
Sweet biscuits, snack bars and fruit snacks 2,759.9 6.7 23,634.6 5.7 10.5
Ice cream 2,411.0 5.5 16,435.1 4.7 12.8
Processed fruit and vegetables 7,275.5 5.3 11,101.0 4.6 39.6
Breakfast cereals 965.0 1.7 10,370.9 2.0 8.5
Rice, pasta and noodles 1,948.6 7.2 9,001.5 7.8 17.8
Baby food 397.3 6.9 7,931.3 4.2 4.8
Sweet spreads 1,203.1 5.2 4,245.8 4.4 22.1
Edible oils 1,975.6 12.5 3,391.1 8.7 36.8
Plant-based dairy 641.3 14.5 3,356.3 8.2 16.0
Total 83,518.4 7.2 440,133.3 6.1 19.0

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Product innovation

Much of the recent innovation in private label has been centred on wellness and sustainability. Retailers are embracing these trends primarily due to increased awareness of climate change and momentum in healthier eating habits that emerged during the pandemic. In addition to being the entry point for lower income consumers seeking affordable food and drink products, health and wellness or ethically certified private label food and drink products allows consumers to enjoy added value without excessive spending.

As inflation is expected to remain high by historical standards, it is expected that consumers will remain price sensitive and seek out private label goods across many product categories and all price tiers, from budget to premium. According to Euromonitor, niche claims bring higher margins and improve image of the retail chain and loyalty of customers. Simplifying ingredients and introducing nutritional and environmental tracking tools will likely help gain shoppers' trust.

Vegetables, seasonings, and bakery products were the sub-sectors with the most private label launches between 2017 and 2021. The bulk of private label launches are made up of new products, new varieties, and new packing. Seasonings had the most new product launches, followed by vegetables, sweet biscuits/cookies. The most common claim made in private label launches are 'kosher', followed by 'no/low', 'free from', 'microwaveable', organic, and 'ethical', emphasizing health and wellness, convenience, and quality in private label claims.

Top 10 private label packaged food categories in the United States by total launches, 2019 to 2023 (October)
Category Total launches New products New varieties New packaging
Vegetables 1,332 124 910 422
Seasonings 1,118 224 875 243
Meat products 1,142 140 877 265
Baking ingredients and mixes 965 119 782 183
Sweet biscuits/cookies 715 155 556 159
Poultry products 746 98 544 202
Nuts 678 143 418 260
Hard cheese and semi-hard cheese 701 99 494 207
Fish products 709 79 534 175
Pasta 663 116 499 164
Other 16,572 3,733 11,829 4,743
Source: Mintel Global New Products Database, 2023
Top 10 private label packaged food claims in the United States by product launches, 2019 to 2023 (October)
Claim Launches with claims Proportion of launches (%)
Kosher 13,294 21.4
No additives/preservatives 7,412 11.9
Low/No/Reduced allergen 6,958 11.2
Gluten free 6,064 9.8
Ethical - environmentally friendly package 5,066 8.2
Ethical - recycling 4,933 8.0
Free from added/artificial flavourings 4,888 7.9
Microwaveable 4,741 7.6
Organic 4,509 7.3
Free from added/artificial preservatives 4,168 6.7
Source: Mintel Global New Products Database, 2023

Competitive landscape

Aldi Group, Kroger, and Target were the supermarket chains with the most private label launches and new product launches in the U.S. over 2019 to 2023.

Discounters such as Aldi and Lidl, which have put private label products at the heart of their business strategies, will continue to benefit from higher private label demand, as they are well-positioned to maintain their price advantage over traditional U.S. grocery leaders such as Target and Kroger, which have responded by expanding their own private label offerings.

According to Euromonitor, grocery chains are expected to adopt multi-price tier strategies for their private label brands. Premium private label will constitute a small but essential share aimed to support the strong image of store brands and help manoeuvre within a changing environment. Premium private label will increasingly penetrate specific category niches and provide retailers with competitive levers.

As the U.S. economy recovers and consumer confidence rises, some shoppers are likely to become more comfortable in paying a little extra for branded products. As this could lead to decelerating demand for private label goods, private labels are expected to continue developing their visibility and develop into "name brands" in their own right.

Top 20 company packaged food sub-sectors in the United States by product launches, 2019 to 2023 (October)
Company Total launches New products
Aldi 2,806 312
Target 2,392 582
Kroger 2,237 222
Giant Eagle 1,810 76
Lidl 1,544 309
H-E-B 1,412 218
Walmart 1,402 48
Better Living Brands 1,399 71
Wegmans Food Markets 1,321 51
Meijer 1,315 222
Whole Foods Market 1,314 82
Lucerne Foods 970 57
Trader Joe's 964 16
Williams-Sonoma 964 231
Foodhold 731 112
Amazon.com 696 278
Wakefern Food 676 341
Publix 604 39
Sprouts Farmers Market 528 61
Southeastern Grocers 519 129
Source: Mintel Global New Products Database, 2023

Aldi group

Aldi group is a German based food retailer that operates in various countries around the world. The U.S. is the only market where both entities of Aldi group are present - Aldi Nord and Aldi Süd. Aldi Süd is the discounter face of Aldi group in the U.S., where as Aldi Nord has been represented in the U.S. by retailer Trader Joes. Aldi group announced in August 2023 their purchase of Winn-Dixie as part of their expansion in the U.S. southeast. The purchase adds approximately 400 Winn-Dixie and Harveys Supermarket locations across Alabama, Florida, Georgia, Louisiana and Mississippi to reach a total of more than 2,400 stores across the U.S.

Aldi Nord has been present in the U.S. since the 1970s when it acquired Trader Joe's. Trader Joe's operates relatively small stores with a limited number of SKUs while offering largely private label products focusing on specialities, delicacies and organic products.

private label products in grocery, household and beauty and health account for 77.5% of Aldi's sales. The highest new product launches from 2019 to 2023 include hard and semi-hard cheese, meat products, and poultry products.

Top 10 Aldi Group packaged food sub-sectors in the United States by product launches, 2019 to 2023 (October)
Sub-sector Total launches New products
Hard cheese and semi-hard cheese 193 42
Meat products 135 10
Poultry products 120 4
Sweet biscuits/cookies 101 10
Bread & bread products 100 5
Soft cheese & semi-soft cheese 98 20
Fish products 96 9
Pasta 90 7
Dips 87 11
Coffee 86 6
Source: Mintel Global New Products Database, 2023

Kroger

Kroger operates nationally under the Kroger banner and numerous other regional supermarket banners: Harris Teeter, King Scoopers and Ralphs. Kroger also operates discounter chain Ruler Foods and hypermarket chain Fred Meyers. private label products in grocery, household and beauty and health account for 22.1% of Kroger's sales. Kroger's private label products are found in the premium, mid priced, and economy segments of packaged food under the Kroger Brand, Simple Truth, Private Selection, Home Chef, and Heritage Farm. Sweet biscuit/cookies were the most common private label new product launched by Kroger, followed by bread and bread products, and seasonings.

According to Euromonitor, in September 2022, Kroger introduced their new private label line called Smartway, a line of non-perishable products targeting price-sensitive shoppers. The range was created by consolidating existing Kroger brands and aligns with streamlined private label initiatives developed by other leading retailers. As part of the deal, Kroger will divest the Debi Lilly Design, Primo Taglio, Open Nature, ReadyMeals and Waterfront Bistro private label brands.

Kroger announced in 2022 that it will buy rival Albertsons in a merger that will form one of the largest grocery store chains in the U.S. with nearly 5,000 stores. The deal is worth US$20 billion and expected to close early 2024.

Top 10 Kroger packaged food sub-sectors in the United States by product launches, 2019 to 2023 (October)
Sub-sector Total launches New products
Hard cheese and semi-hard cheese 149 43
Meat products 126 8
Sweet biscuits/cookies 109 21
Pasta 97 5
Poultry products 96 0
Bread and bread products 94 5
Fish products 88 0
Dips 80 6
Vegetables 78 3
Coffee 69 1
Source: Mintel Global New Products Database, 2023

Target

Target Corp. is the U.S.' largest mass merchandiser operating mass merchandiser, hypermarket, and variety stores across the U.S. Target is the closest rival to Walmart Inc. in the U.S.

Target's foray into private-label brands began with groceries and is among the most successful of leading retailers. private label products in grocery, household and beauty and health account for 15.1% of Target's sales. Target's private label products are found in the premium, mid priced, and economy segments of packaged food under the names Simply Balanced, Good and Gather, Market Pantry, and Favourite day. Vegetables, bakery, and cakes/pastries were the sub-sectors with the most launches.

Target offers environmentally friendly products to reach out to younger generations. Eating "clean" and organic has also become more popular amongst consumers, especially younger ones, who are looking to stay healthy and not harm the environment with their food products. For example, Simply Balanced offers food products without artificial flavours or preservatives, and more than half of the products are organic. Good & Gather offers many organic products without artificial sweeteners or high fructose corn syrup.

Top 10 Target packaged food sub-sectors in the United States by product launches, 2019 to 2023 (October)
Sub-sector Total launches New products
Baking ingredients and mixes 120 16
Sweet biscuits/cookies 107 27
Cakes, pastries and sweet goods 106 34
Vegetables 102 13
Seasonings 100 9
Nuts 93 12
Meat products 92 9
Snack mixes 84 16
Poultry products 64 14
Fruit snacks 59 14
Source: Mintel Global New Products Database, 2023

Product launches

Over 2018 to 2022, 34,047 private label products were launched to the U.S. The most popular product claims were Kosher, no/low, gluten free, and free from. Aldi launched the greatest number of products, followed by Kroger and Target.

Private label product launches in the United States, 2018 to 2022
Product attributes Number of new product by year Total
2018 2019 2020 2021 2022
Yearly product launches 6,999 6,336 7,201 7,245 6,266 34,047
Top 5 claims
Kosher 2,869 2,600 2,923 3,217 2,415 14,024
No additives/preservatives 1,658 1,500 1,817 1,617 1,424 8,016
Low/No/Reduced allergen 1,387 1,337 1,494 1,601 1,480 7,299
Gluten free 1,178 1,177 1,304 1,345 1,297 6,301
Free from added/artificial flavourings 1,076 964 1,165 1,029 963 5,197
Top 5 companies
Aldi 523 639 702 604 531 2,999
Kroger 759 434 420 713 283 2,609
Target 300 326 690 570 417 2,303
Walmart 667 290 309 261 332 1,859
Giant Eagle 263 366 373 338 425 1,765
Top 5 flavours (including blend)
Unflavoured/Plain 2,355 1,952 2,556 2,311 2,023 11,197
Flavours unavailable 115 106 127 98 136 582
Chocolate 112 94 96 147 105 554
Not specified 191 122 69 64 83 529
Vanilla/Vanilla bourbon/Vanilla madagascar 71 72 49 85 50 327
Top 5 package types
Flexible 2,055 2,099 1,959 2,033 2,026 10,172
Jar 692 550 759 894 878 3,773
Tub 667 618 838 843 507 3,473
Flexible stand-up pouch 658 663 738 792 619 3,470
Bottle 770 571 665 649 587 3,242
Launch types
New variety/range extension 3,406 3,510 3,998 4,044 3,683 18,641
New packaging 1,845 1,301 1,487 1,623 1,466 7,722
New product 1,194 1,109 1,214 1,114 845 5,476
Relaunch 533 410 492 448 263 2,146
New formulation 21 6 10 16 9 62
Source: Mintel Global New Products Database, 2023

New product examples

Pumpkin Flavored Baked Dog Snacks

Source: Mintel Global New Products Database
Company H-E-B
Brand Heritage Ranch by H-E-B Select Ingredients
Category Pet food
Sub-category Dog snacks and treats
Launch type New variety / range extension
Price in US dollars 3.48
 

Heritage Ranch by H-E-B Select Ingredients Pumpkin Flavored Baked Dog Snacks retail in a 10.6 ounce pack. - Human grade dog snacks - Oven baked into fun shapes, with a yummy pumpkin flavor that will drive dog's taste buds wild - No artificial flavors or added colors - Packed with the best ingredients - Created especially for the care and well being - Free from corn or soy- Logos and certifications: Go Texan, How2Recycle

Claims: Ethical – No additives / preservatives, Free from added / artificial colourings, Free from added / artificial flavourings

Halloween Mini Masks Cookie Kit

Source: Mintel Global New Products Database
Company Target
Brand Favorite Day
Sub-category Sweet biscuits / cookies
Launch type New variety / range extension
Price in US dollars 10.00
 

Favorite Day Halloween Mini Masks Cookie Kit is now available for Halloween 2023, and retails in a 12.4 ounce pack. - Includes eight pre-baked cookies, pre-made black icing pouch, green, orange and white icing tubes, purple sanding sugar, and Halloween confetti sprinkles for decorating - Logos and certifications: Kosher, How2Recycle with Recycle if Clean & Dry - Store Drop-Off

Claims: Ethical – Kosher, seasonal, ethical - Environmentally friendly package, ease of Use, ethical - Recycling

Maple Brown Sugar Bourbon Bar Baking Mix

Source: Mintel Global New Products Database
Company Giant Eagle
Brand Market District
Category Bakery
Sub-category Baking ingredients and mixes
Launch type New variety / range extension
Price in US dollars 3.99
 

Market District Maple Brown Sugar Bourbon Bar Baking Mix retails in a 20.7 ounce pack. - Makes maple brown sugar bars with bourbon flavored glaze - Limited edition - Naturally and artificially flavored - Free from artificial colors - The delicately balanced flavors create a uniquely delicious finished product that is perfect for gatherings and gifting - Preparation instructions - Recyclable pack made from 100% recycled cardboard - Logos and certifications: Kosher

Claims: No additives / preservatives, Kosher, Seasonal, Ethical - Environmentally Friendly Package, Limited Edition, Ethical - Recycling, Free from added / artificial colourings

For more information

The Canadian Trade Commissioner Service:

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For additional information on the Private Label Manufacturers Association's annual trade show, please contact:

Chris Bigall
Trade Commissioner
chris.bigall@international.gc.ca

Resources

  • Euromonitor International:
    • Retail Corporate Strategies in Private Label (April 2023)
    • Retail in the U.S. (April 2023)
    • Private Label: Evolution of Premium in Food and Beverage (January 2023)
    • Discounters in the U.S. (April 2023)
    • Supermarkets in the U.S. (April 2023)
    • Aldi Group in Retailing (August 2022)
    • Kroger Co. Company Profile (February 2020)
    • Target Corp. Company Profile (January 2021)
  • Mintel Global New Products Database, 2023
  • Progressive Grocer
  • The Food Institute
  • Cision

Sector Trend Analysis – Private label in the United States
Global Analysis Report

Prepared by: Kris Clipsham, Market Analyst

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