Private Brands Achieve Record Growth in First Half of 2024
In an unprecedented achievement for the retail sector, private label products have soared to new heights, achieving record-breaking sales in both unit and dollar amounts within the first half of 2024. This landmark success underscores the growing consumer preference for store brands over national counterparts.
Analyzing the latest Circana data, the Private Label Manufacturers Association (PLMA) reports a remarkable uptick in private label market presence. By June 16, private labels boasted a unit market share of 22.9% alongside a dollar market share of 20.4%, setting a new standard for the industry. The acceleration of private label growth is reflected in the astounding sales figures, which amounted to $121 billion in the span of six months, in stark contrast to the $472 billion sales recorded for national brands.
The data reveals a noticeable disparity in the performance of private versus national brands at the point of sale. Private label dollar sales surged by 2.3%, significantly outpacing the 1.1% increase seen in national brands. This trend was even more pronounced in unit sales, with private brands experiencing a 2.5% uplift, while national brands witnessed a 0.8% decline.
“These record highs in market shares illustrate the ‘Store Brands Phenomenon’ that’s sweeping the retail industry across all channels, departments, and categories,” expressed PLMA President Peggy Davies, highlighting the broad appeal and success of private labels.
Further analysis of the 10 individual product departments tracked by Circana for PLMA showcased a universal surge in private label sales across the board. Notably, the beauty department led the charge with a striking 10% increase, closely followed by liquor at 8.8%, general food items at 6.9%, home care products at 6.8%, pet care essentials at 5.8%, beverages at 4.3%, frozen goods at 2.9%, general merchandise at 2.2%, and home items at 1.7%. The only category to experience a dip was refrigerated goods, which saw a minimal decrease of 0.7%.
This compelling growth narrative of private labels not only solidifies their position in the market but also signals a pivotal shift in consumer shopping behaviors. Once viewed as merely cost-effective alternatives to national brands, private labels have evidently transcended this perception, winning over shoppers with a blend of quality, value, and innovation. As private labels continue to set new records and expand their market share, it is clear that they are reshaping the retail landscape, offering a formidable challenge to established national brands and redefining consumer choice.
The remarkable achievements of private labels in the first half of 2024 are a testament to their increasing significance in the consumer marketplace. As we move forward, it will be intriguing to see how this dynamic evolves and what strategies national brands will adopt to compete in an increasingly private label-dominated market.
