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Key Highlights

The evolving landscape of consumer preferences, rapid digitalization, and a heightened focus on affordability are defining trends highlighted by industry leaders in the current era. Moving forward, retailers must concentrate on various operational facets, including sourcing, product design, quality assurance, brand management, marketing, and consumer insights. It's crucial to address any capability gaps to ensure consumer loyalty remains with private label brands, mainly as they engage with new audiences.

In 2022, private-label brands gained prominence and increased market reach due to their availability and affordability, amidst prolonged economic uncertainty. Our analysis discovered that eight out of the top ten brands with the most SKUs across all grocery retailer websites were private-label goods. This highlights consumers' preference for private-label brands and a significant shift in their preferences.

  • U.S. retailers typically offered over 4,200 private label products online, with a penetration rate exceeding 12%.
  • Private label products accounted for 5 out of the top 14 grocery categories.
  • Private label brands dominated 8 out of the top 10 positions for brands with the highest number of SKUs.
  • The pantry category boasted the highest number of private label SKUs, totaling over 7,300 and comprising 16.7% of the total SKU count.
  • Private label presence was least pronounced in the alcohol and beverages (7.1%) and beauty and personal care (7.3%) categories