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Private label sales growing four times faster than national brands

Private label sales growing four times faster than national brands

Author: Daphne Howland 

 Source: Retail Dive

  • With the accelerated sales growth of private-label consumer products from 2.2% in 2015 to 5.8% in 2018, and annual sales growing faster than national brand sales by a factor of four last year, those brands have effectively disrupted the category, according to a report from Coresight Research emailed to Retail Dive.

  • Target and Kroger recently stepped up their game in private label, at a time when small grocers like Aldi and Lidl, as well as Amazon, have all appealed to U.S. consumers with their own brands, according to the report. But Costco's Kirkland remains the titan in the space with sales exceeding $39 billion last year, reflecting a higher than 10% growth rate, Coresight said.

  • CPG makers are fighting back in various ways, Coresight said, noting efforts like Unilever's 2016 acquisition of Dollar Shave Club, Procter & Gamble's online shopping site eStore and new iterations of the products themselves.



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