Private Label Market Insights

FMCG giants built their empires on brand equity. But today’s consumer isn’t just buying logos, they're buying value. And increasingly, that value is coming from premium private labels. Once seen as “budget alternatives,” private labels are now going head-to-head with the brands they sit beside on the shelf. And in many cases, they’re winning. → Carrefour’s premium line grew 14% YoY in 2023. → Target’s Good & Gather now generates $3B+ annually. → ALDI USA’s private label wine and skincare lines have earned awards once reserved for heritage players. This isn’t just about pricing anymore. It’s about trust, innovation, and design-forward products that feel luxurious without the markup. What does this mean for FMCG leadership? It means the marketing skill set is evolving. → Less “how do we tell a great story?” → More “how do we build great value and margin into the product itself?” The shift we’re seeing in executive hiring reflects this too. Companies aren’t just looking for brand architects they’re looking for commercial minds who understand value engineering, smart pricing strategy, and how to lead when consumer loyalty is fluid. According to NielsenIQ, 39% of global consumers now prefer private labels for quality not just price. And IRI reports that private label share has reached 38% in Europe and 21% in the U.S. These aren’t small numbers. They’re a clear signal that consumer perception has changed and leadership capability must change with it. From the boardroom to the product brief, value is no longer a “cost-down” discussion. It’s a strategic differentiator. And the companies who understand that who can hire leaders that understand that will be the ones who don’t just weather the shift, but lead it. #FMCG #ConsumerGoods #Leadership #ExecutiveSearch #PrivateLabelStrategy #Innovation #Marketing

HOW KIRKLAND OUTSMARTS BIG BRANDS—A MASTERCLASS IN PRIVATE LABEL STRATEGY When I visited Costco recently to pick up my usual Kirkland Signature Ibuprofen, I noticed something odd: two Kirkland options. One came in an orange bottle with round tablets, the other in a blue bottle with elongated ones. ❓ Was there a difference in formulation? Nope. But there was a strategic stroke of genius. The blue bottle mirrored Advil. The orange mimicked Motrin. Same Kirkland product, different packaging cues — each designed to trigger immediate brand recognition and comfort among loyal buyers of those legacy brands. This is private label sophistication at its best. It’s not just about offering a cheaper alternative (though Kirkland's version was ~40% less). It’s about lowering psychological switching costs by mimicking visual and functional design cues consumers already trust. 👉 This subtle packaging strategy increases the chance of perceptual generalization — getting consumers to confidently choose Kirkland because it feels like the brand they already know. Smart, simple, and powerful. What other examples have you seen of retailers using clever design to win over national brand buyers? If you enjoyed this, share it with others and follow me, Jan-Benedict Steenkamp, for more writing. #RetailStrategy #PrivateLabel #BrandMarketing #Costco #ConsumerBehavior #PackagingMatters

National brands are important to consumers, which is why most department stores stock them and do good trade from them. The problem with national brands, especially for mainstream department stores, is that a lot of other retailers also sell them. And, of course, a lot of brands have been opening more of their own stores over recent years. When we looked at where Macy's had lost customers to over the past 3 years, 19.4% of them had shifted their spend to the stores and websites of prestige and premium brands. They’re going directly to stores that have better assortments and are more appealing places to shop. This dynamic is one of the reasons why it is important for department stores to develop their own brands to sell alongside national brands. If done well, it adds a point of differentiation. Own brands are often higher margin. And, in some cases, they can fill in gaps in the price and range architecture that are not addressed by national brands. However, this is not just a matter of throwing some product out there. Brands needs to be designed with care and purpose, and with a target customer in mind. In store they must be given their own personality and feel so that they hold their own against national brands. Below are some examples from UK retailers Fenwick, John Lewis & Partners, and Marks and Spencer. M&S is worthy of mention as it has sold private label apparel since the 1920s and has a fantastically strong private label business. However, recent efforts to reenergize and modernize private label apparel are really paying dividends – as their great results from this morning show. Of course, none of this means national brands can be neglected. Kohl's has done this to its detriment. And even M&S has introduced some national brands into its stores. It’s about creating a balance between the two. #retail #retailnews #brands #departmentstores #apparel #privatelabel

Brands worry too much about competing with other brands.... Without realizing who the biggest competitor is lurking around the corner. -- Private label -- It has seen enormous growth over the past decade. In part because of inflation and price conscious consumer. But more so - Private Label products actually taste good. 92%. That's the percent of consumers that say they trust private label as much or more than national brands. 85%. That's the percent of consumers that say the quality of private label is as good or better than national brand. Both of those %'s have increased over the past couple of years. Brands definitely need to worry about what other brands are doing. But make sure you're positioning yourself to stand out against private label. When an average consumer comes to the retail shelf. And they see your product at $3.99 and private label at $2.29... How are you continuing to justify the extra $$ in price??

CPG Brand Marketing Leaders, As I try to find instructive lessons from the rollercoaster of the last week, my first "duh" is that across the political spectrum we were all emphatically reminded of inflation’s dominant impact on voter/consumer decisions at the grocery shelf. Marketers know price is only part of the value equation and can’t breed loyalty alone. Nowhere is this more evident than with the recent phenomenal success of Private Label food brands, now trustworthy, sustainable, “real” brands in their own rights. In H1 2024, overall PL dollar share topped 20% and grew at 2x the rate of national brands. The WHY is pretty obvious. But a recent webinar by Hunter Thurman of Alpha-Diver dug into HOW private retailer brands are garnering enviable loyalty. Here are 3 ways they’re crushing it. 𝟭. 𝗖𝘂𝗿𝗮𝘁𝗶𝗻𝗴 𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗕𝗿𝗮𝗻𝗱 𝗣𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼𝘀   Mass /Grocery retailers are simultaneously investing in multiple brands to address the gamut of shopper needs at multiple price tiers. Target has been successfully activating this strategy for years with their trifecta: 🍪𝘎𝘰𝘰𝘥 & 𝘎𝘢𝘵𝘩𝘦𝘳: the $4B food/bev brand of 2,500+ items touts quality ingredients, culinary inspired flavors, and clean labels. G&G shoppers are highly valuable, making 4X the # trips with 8X higher spend per trip vs Tgt’s typical grocery shopper. 🍨 𝘍𝘢𝘷𝘰𝘳𝘪𝘵𝘦 𝘋𝘢𝘺: the "fun sibling" brand is Target’s celebration play, with snacks/treats that “make life’s little moments of indulgence even sweeter,” from ice cream and cake decorations to mocktails and mixers. Don't recent days give us license to make every day a Favorite Day…Mixer Monday, anyone?! 🥫𝘔𝘢𝘳𝘬𝘦𝘵 𝘗𝘢𝘯𝘵𝘳𝘺: the veteran no-nonsense, family friendly OPP brand priced 10- 30% below branded equivalents has long been meeting the "economy stupid" moment. 𝟮.𝗢𝘂𝘁𝗽𝗮𝗰𝗶𝗻𝗴 𝗶𝗻 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 & 𝗣𝗿𝗲𝗺𝗶𝘂𝗺𝗶𝘇𝗮𝘁𝗶𝗼𝗻 Another brand defying the PL as Knockoff paradigm is Walmart’s bettergoods, their biggest owned brand launch in 20 years. The 300+ line of premium quality, trend-forward foods, most <$5, tout plant-based, gluten free and “made without” claims. It’s proven incremental to the OG Great Value brand, capturing trips from outlets like Trader Joes. 𝟯. 𝗙𝗿𝗼𝗺 𝗧𝗿𝗮𝗱𝗶𝗻𝗴 𝗗𝗼𝘄𝗻 𝘁𝗼 𝗧𝗿𝗮𝗱𝗶𝗻𝗴 𝗢𝘂𝘁  Alpha Diver shared their recent buyer persona/decision making work showing Price is NOT the key driver of Value, but rather Reliability, fun Experiences and removing the work of Price Shopping. Amazon Aplenty (launched in 2021 in response to Favorite Day) offer products “crafted to be craveworthy,” and was designed “not as a flanker to advertised brands but as a competitor to them.” Smart stuff, huh? While upending some classic marketing principles, these examples will make me rethink my autopilot shopping list to include "PL" choices. How have your shopping habits changed to incorporate retailer owned brands?  #insights #foodandbeverage #brandgrowth

Private label products have historically been viewed as budget-friendly alternatives for families looking to save. But today, they are competing head-to-head with national brands in nearly every category. 📈 By mid-2024, 50% of global shoppers reported buying more private label products than ever before. 📈 Private label now accounts for 19.4% of total FMCG sales worldwide—and continues to grow. This shift isn’t just about inflation, though rising prices have made shoppers more cost-conscious. Retailers have raised the bar on private label quality, making the value proposition stronger than ever. Consumers are getting an excellent product at a better price, and that’s a tough combination to beat. National brands now face a landscape where private label is gaining ground, and price gaps are harder to justify. To stay competitive, they need to rethink how they drive loyalty. Many private labels are winning not just on price, but on exclusive perks—like retailer membership programs that incentivize repeat purchases—or through strategic collaborations that add perceived value beyond affordability. National brands should similarly focus on differentiated offerings, premium innovation, and deeper personalization to retain their customer base before private labels claim it for good.

A mounting challenge for CPG companies: Private labels are dominating the US market. According to a recent Jefferies survey, 51% of consumers now buy more private-label products to save money. And with good reason – the average grocery bill is up 26% from 2019. This rising US trend is taking a page from the private-label playbook in Europe, where store brands account for about 40% of grocery sales. With recent line launches, US consumers have more private-label options than ever: • Walmart launched Bettergoods in April, which features plant-based products. •Ahold Delhaize, owner of Food Lion, Stop & Shop, and other chains, offers an organic line called Nature’s Promise and a premium line called Taste of Inspirations. • Store-brand champions, Aldi and Trader Joe’s have been dominating market share. Stronger supply chains have historically given CPG companies the edge in quality. Now? That gap is closing. Since pandemic supply disruptions have settled, companies like Walmart and Costco have gained market share. More store-brand advantages have emerged: • 𝗟𝗲𝘀𝘀 𝗖𝗣𝗚 𝗶𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻: Target exec Carlos Saavedra said a lack of innovation in the last decade prompted its launch of Figment, a kitchenware brand. • 𝗗𝗶𝘀𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻 𝗮𝗴𝗶𝗹𝗶𝘁𝘆: Owning its distribution, Aldi churns out approximately 100 rotating products a week called “Aldi Finds.” • 𝗖𝗼𝗻𝘀𝘂𝗺𝗲𝗿 𝗽𝗿𝗲𝗳𝗲𝗿𝗲𝗻𝗰𝗲𝘀: Inflation has shifted preferences toward US store brands priced 20% lower than national brands on average. What does this mean for those entering the CPG space? Companies that build remarkable brands and innovative products will own market share. In the meantime, “me too” brands will fall by the wayside.

Are You Tying Up Capital in Private Label Assortments That Aren't Moving? The 80/20 rule is still not being applied by most private label partners, as buying teams and private label development teams work in silos, racing at 100 miles per hour without strategic alignment. The capital trap most retailers fall into is investing in fragmented, long-tail assortments with low margin velocity instead of focusing on what drives 80% of your revenue. 🎯 The Strategic Framework That Actually Works ✅ Think Like a Sandwich Builder Private label is your bread and butter while branded products fill strategic gaps. This analogy changed everything for our clients. ✅ The Four Pillars of High-Velocity Private Label: ↳ Velocity Over Variety: Can this product maintain a stable volume with consistent demand? If not, scaling will only increase your risk. Survey your customers - what do they need day in and day out? ↳ Category-Specific Investment Strategy: Stop using one-size-fits-all approaches. Different categories require different capital investments: Woven vs. knits require completely different fabric commitments and MOQs Each category has unique factory investment timelines Focus on the lowest investment, highest ROI categories first ↳ The 80/20 Revenue Rule: Ruthlessly audit your assortment. What 20% of your products drive 80% of your revenue? Cut the long tail that's eating your margins and go deep on what's performing. ↳ Essential Over Trendy "It's not about trend, it's about essential. It's about the comfort." Focus on what your customers truly need, not what's hot right now. 💡 The Collaboration Game-Changer Before: Private label gets "pushed down the throat" to buyers because it's a house brand. Today: Buyers and private label teams work collaboratively, sharing market insights about where branded products need to fill gaps on top of your private label foundation. ⚠️ Are You Actually Ready for Private Label? Before jumping in, ask yourself: ↳ Do we have the systems in place? ↳ Do we have the operational support? ↳ Are our processes optimized for private label efficiency? Many retailers aren't set up for private label success. The key is thinking strategically and lean - test the market first before making huge upfront investments. Stop bleeding capital on assortments that don't move. Focus on essential, high-velocity products that your customers actually need, and build the operational foundation to support sustainable private label growth. Ready to transform your private label strategy from reactive to strategic? Yushkova Designs can help you build that foundation. #privatelabel #retailstrategy #inventoryoptimization #capitalefficiency #retailoperations

There’s a $271 Billion Titan Beneath the Shelves. And It’s Reshaping the Future of Retail. It’s not mythological. It’s not theoretical. It’s private label. And it’s moving faster than traditional CPG. According to Numerator’s February 2025 report, private label now represents 24% of all CPG sales in the U.S. But what’s more important than market share… is momentum. Private label is growing faster than retail itself. Private Label Share by Channel: Club: 33.3% Mass (Walmart/Target): 28.2% Grocery: 25.2% Online: 21.4% C-store: 13.2% Beauty: 2.7% Top Private Label Retailers: Aldi: 75% Trader Joe’s: 74% H-E-B: 32% Sam’s: 31% Costco: 30% Walmart: 24% Amazon: 2% Where Private Label Dominates in Food & Sundries: *Shelf-Stable Grocery (pasta, canned goods, baking): >30% *Dairy & Refrigerated (milk, yogurt, cheese): 40%+ in some banners *Frozen Foods (vegetables, meals, desserts): 35% avg. *Bakery & Breads: Strong private label performance in value formats *Household Essentials & Paper Goods: 45%+ PL penetration *Snacks & Beverages: Growing quickly, but still brand-driven This is not just a trend. It’s a global market correction. Europe faced this reality years ago. In Spain, Germany, France, and the UK, private label exceeds 40% share—seen not only as affordable, but reliable and trusted. But here’s the lesson: It’s not about replacing brands. It’s about strategic balance. Private labels drive margins, loyalty, and control. But national brands still build traffic, emotion, and storytelling. So what should brands and retailers do? ✔ Rethink the balance between branded and private offerings ✔ Innovate faster than private label can copy ✔ Build communities, not just followers ✔ Use storytelling and design to elevate perceived value ✔ Double down on fresh, seasonal, and premium innovation ✔ Lean into data, purpose, and consistent retail execution Having spent two-thirds of my career on the retailer side—at Costco and Walmart, I understand firsthand the complexity of managing both branded and private label portfolios across fresh, food, and general merchandise. If your organization is navigating this shift, rethinking value, or building a differentiated brand strategy in the face of growing private label pressure— I’d be glad to help you lead that evolution. Let’s connect. #RetailStrategy #PrivateLabel #AgriFood #FreshProduce #CPGLeadership #ConsumerTrust #BrandDifferentiation #RetailTrends #ShopperBehavior #SmartBranding #Innovation #WholeFoods #HEB #Costco #TraderJoes #FutureOfRetail

My dad was diehard Heinz ketchup fan. He refused to use any other brand of ketchup, even at restaurants. That kind of loyalty rarely exists anymore. Why? Well, it’s partially due to economic uncertainty. Consumers are more sensitive to price, and willing to swap their favorites for cheaper alternatives (looking at you, store brands!). But the paradigm shift is more generational than anything. Some store brands are perceived to be equivalent to national brands. Those classic TV commercials many of us grew up memorizing (“Maybe she’s born with it…!”) have been replaced by influencers showing off their favorite bargain buys with little-known products. In fact, store brands are more popular than ever. Often, store or emerging brands are tapping into unmet consumer needs. The product simply needs to meet or surpass expectations, whether that’s cost, quality, or results. If it does, then it doesn’t matter who made it - and the more economical the better. Even the most financially secure households are going in this direction – 72% of high-income ($100k+) U.S. shoppers are favoring private label alternatives to brand name goods. This shift in consumer behavior highlights the importance of using insights to more deeply understand your customer and provide a great experience. Traditionally, brands relied on building brand loyalty through advertising and a focus on emotional connection. Now, successful brands, whether national or store-owned, need to prioritize what the customer truly wants. And reach their audience where they are. #MarketInsights #BrandStrategy #ConsumerIntelligence