Private Label Sales Projected To Grow 6% Annually Through 2030, Reaching $462 Billion

Private label products have proven to be a boon for retailers in multiple verticals throughout 2024, and their presence on store shelves — physical or digital — is only expected to grow in the years to come, according to Store Brands.

Briefly detailing the events of the UNFI Spring and Summer Selling Show held in San Diego, California, the outlet's Greg Sleter gestured toward a rosy future for private label sales.

"During the Spring and Summer Selling Show, private label was a hot topic. Attendees learned that store brands are estimated to grow approximately 40% over the next six years driven by competitive pricing, improved quality, and increased innovation. Through 2030, private label sales are forecast to grow nearly 6% annually, reaching sales of $462 billion," Sleter wrote.

"To capitalize on this trend, retailers learned that they should consider a clear private brand strategy that communicates the value — and differentiators — of their private brand products to their shoppers," he added.

Private Label Sales Had a Very Strong 2024

As the Private Label Manufacturers Association (PLMA) documented in a Jan. 16 press release, private label products enjoyed a relatively strong year in 2024, with growth outpacing national brands.

According to the PLMA, store brand sales ticked upward by $9 billion over 2023's figures to reach a record sum of $271 billion in 2024. That increase represents a 3.9% rate of annual growth, with Circana data being taken from Jan. 8 through Dec. 29, 2024, in terms of calculations.

In contrast, national brands saw sales growth of just 1%.

"Sales of store brands hit a record high last year,” said PLMA President Peggy Davies. “The quality, value and innovation that store brands provide can’t be beat.”

In all 10 categories tracked by Circana, store brands saw growth. Notable leaders (in terms of dollar sales) included:

• Refrigerated (up 7.5%)
• General food (up 4.3%)
• Beverages (up 4%)

And concerning unit sales, the categories exhibiting the strongest growth were as follows:

• Beverages (up 3.5%)
• Pet care (up 3.5%)
• Home care (up 3.2%)

PLMA's 2025 Private Label Report is expected to be published sometime in February, with further details and data breakdowns to be provided at that time.

Dollar General To Beef Up Its Private Label Roster, Following Walmart, Kroger, and Amazon

In line with the projections and analysis put forth by both the UNFI conference attendees as well as PLMA's data, it appears Dollar General is suiting up to wade more deeply into the private label pool.

As a separate report from Store Brands outlined, Dollar General plans to expand its inventory with roughly 100 new items, half of which will fall under its Clover Valley brand. Given the above data points — namely, that grocery store products and food more broadly appear to account for a substantial growth segment — and that Dollar General has already seen healthy spend on its existing 600-plus Clover Valley products (and more than 3,200 consumable private brand products), it seems a trend that is set to continue.

"As shoppers seek value and quality, we continually listen to customer feedback to identify opportunity gaps,” said Dollar General EVP and CMO Emily Taylor.

“With more than half of our customers’ baskets having at least one private brand item, we are proud to make significant investments in our private brands, bringing even more on-trend products and pantry staples to shelves,” Taylor continued.

As Food Dive reported, Dollar General will be joining larger existing players buying further into private label, including Kroger (Field & Vine), Walmart (bettergoods, Great Value, George, etc.), and Amazon (Amazon Basics, Amazon Saver). Field & Vine, bettergoods, and Amazon Saver all debuted in 2024, reflecting confidence in the continued success of private label brands over national brand competitors moving into 2025 and beyond.