Sales of private brand goods have surpassed $217 billion in the U.S. despite economic reports of high inflation, according to a new report from Circana. The experts says private label / store brands are growing in market share and dollar sales. The demand is being fueled by consumers with families that recognize the value in purchasing private brands.

Mary Ellen Lynch, Principal, Center Store Solutions, Circana, attributes the increase to budget savvy shoppers, noting, “this trend is driven by consumers, particularly those with children, as well as millennial and Gen X households without children, who are strategically employing a variety of methods to stretch their dollars amid high inflation.”

Opportunities for growth

The growing interest amongst shoppers for store brands represents new opportunities for retailers to promote their offerings while catering to current shopping trends and furthering the trust of their customers. Marketing products that focus on the ways consumers are choosing to cook their meals, such as air frying, instant pots, and other small appliances, will also create other opportunities for growth. Investing in innovation and digital marketing promotions to keep up with the trends will allow retailers to further support their customer base. 

Related: 2024 46th Annual Retailer Survey

PLMA Report: 64% of Gen Z Favor Store Brands

What Can Independents Learn From Other Retailers?