The private label market in the U.S. has experienced strong growth over the past four years, rising by 34% during this period. From January to August 2024, private label dollar sales rose by 26%, significantly outpacing national brands, which grew only by 1%. In terms of unit sales, private label increased by 2.3%, while national brands declined by 0.8%. The total dollar share for private label stands at 20.3% and total unit share at 22.8%, which are record highs in the U.S. market. Total private label sales in 2023 were valued at $236 billion, a marked increase of $10 billion from the previous year. Projections suggest that private label sales will surpass $262 billion by the end of 2024.

A national survey conducted by FMI, the Food Industry Association reported that 55% of grocery shoppers purchased more private label products over the past year, compared to 28% for national brands. Private label products, with their lower price points, are driving grocery loyalty among cost conscious shoppers. According to Kerry Group, changing consumer preferences have seen a shift in demand for high-quality, flavourful and healthy food options. Transparency and sustainability have also become more important to consumers, and it is increasingly important for retailers to improve labelling and highlight ethical sourcing methods.

Malaysian manufacturers that offer OEM private label services and have attained U.S. FDA certification are well-positioned to penetrate the U.S. private label market and meet the growing demand for quality and affordable products. This includes Malaysia Business Group members such as Asia Food & Beverage Sdn Bhd, GFB Food Sdn Bhd, Green House Ingredient Sdn Bhd, Happy Alliance (M) Sdn Bhd, Koon Brother Sdn Bhd, Nims Adeliciousz Sdn Bhd and SKS Food Industries (M) Sdn Bhd.

The U.S. Private Label Trade Show in Chicago provides access to the U.S. private label market and latest developments, connecting private label manufacturers with buyers from major supermarkets, supercentres, convenience stores, online retailers and more. The 2024 edition of the event will be held on 17 to 19 November at the Donald E. Stephens Convention Centre.

References
Kerry (21 June 2024). Private Label Growth Trends: New Opportunities for Innovation. https://www.kerry.com/insights/kerrydigest/2024/private-label-growth-trends.html

PLMA Live.eu (2024). Private Label Sales Surge in U.S. https://plmalive.eu/?node=1078