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Private label sales grew over 11% last year

This article was written with the assistance of GPT-3.

The trend: Private label products sales grew 11.3% in 2022, resulting in a record $228.6 billion in revenues across all US retailing channels, and a 0.7 point increase in private label’s dollar share to 18.9%, per a Supermarket News report based on the Private Label Manufacturers Association’s annual report.

  • Store brands accounted for a 20.5% share of total industry sales.

The context: The surge was a result of rising grocery prices, which have been elevated for more than a year. Grocery prices were up 11.3% year-over-year in January, per the US Labor Department.

  • The private label food categories that generated the strongest revenue gains included beverages (with dollar sales up 19.1%), deli prepared (17.3%), refrigerated (17.1%), liquor (15.6%), general food (14%), floral (13.5%), bakery (12.6%), produce (11.9%), and deli meat (10.3%).
  • Non-food categories with the biggest private label sales increases included cups and plates (18.3%), pet food (16.8%), and toilet paper (14.8%).

Analyst take: Store brands traditionally proliferate when inflation or a recession leads consumers to spend more conservatively.

  • That presents an opportunity for retailers to grow their revenues given that many have spent years making their in-house brands more premium and unique.

Go further: Read our Private Label Brands report.