Private Label Brands Continue to Outperform National Brands
NEW YORK — Sales of private label brands are setting records.
Store brands reached all-time highs in both unit and dollar share during the first six months of 2024 vs. the year-ago period, according to new Circana sales data provided exclusively to the Private Label Manufacturers Association (PLMA). Unit market share was 22.9% and dollar market share was 20.4% as of June 16.
"These record highs in market shares illustrate the 'store brands phenomenon' that's sweeping the retail industry across all channels, departments and categories," said PLMA President Peggy Davies.
[Read more: Private Label Brands Reached Record Dollar Sales in 2023]
The improved market shares came on the strength of store brands' superior performance at checkout vs. national brands. Store brand dollar sales were up 2.3% vs. a gain of 1.1% for national brands. In unit sales, the difference was even greater: store brands increased by 2.5% while national brands dropped 0.8%.
Total store brand sales for the six months of 2024 were $121 billion and national brand sales were $472 billion.
Results in the 10 individual product departments that Circana tracks for PLMA paint a clear picture of where store brand sales are doing well. It's nearly everywhere, as nine of the departments posted dollar sales gains for the 52 weeks ending June 16, reported PMLA.
Categories that saw gains are:
- Beauty (+10%)
- Liquor (+8.8%)
- General food (+6.9%)
- Home care (+6.8%)
- Pet care (+5.8%)
- Beverages (+4.3%)
- Frozen (+2.9%)
- General merchandise (+2.2%)
- Home (+1.7%)
Only refrigerated slipped, but it was a nominal -0.7%.
PLMA estimates that if sales continue at the current rate for the balance of the year, total store brand revenue for 2024 will exceed $250 billion, setting a new record for annual sales.
Founded in 1979, the Private Label Manufacturers Association is a nonprofit trade organization which promotes the store brands industry. With executive offices in New York and international council offices in Amsterdam, the PLMA currently represents more than 4,500 member companies worldwide and provides its members with annual conferences, executive education programs and professional development opportunities.